Rice Warner has questioned why much of the financial advice industry has failed to meet consumers’ needs, and has called for a review of the Future of Financial Advice reforms.

In a blog post on the future of financial advice, the actuaries group notes the Hayne royal commission has exposed the issue of separating financial advice from product recommendations.

It says many aspects of strategic financial advice are not covered by legislation, and the transition to recent consumer legislation has not been smooth. It is difficult to focus on client goals and developing financial strategies given current ownership and product structures.

The royal commission is likely to lead to further separation between fee-for-service advice and product choice, the post says. Advisers should be unbiased on products and should be paid by clients for services rendered.

Fees could be debited against a financial product, with the consumer’s approval and control, Rice Warner says. The industry needs to educate the public about the value of advice, and ensure governance standards are developed.