Advisers say the release of draft legislation for the next phase of advice reforms may be decided by the timing of the federal election, which must be held by May. 

Assistant Treasurer Stephen Jones said this month the government was developing the bill for consultation, after providing more details about the new class of advisers and other proposed changes. 

“We are still hoping we will see something in the new year, but of course the timing of the federal election is a consideration here,” Financial Advice Association Australia CEO Sarah Abood told a policy and advocacy webinar for members. 

“If we do have sitting weeks in February, then it’s possible [that] we might see it during those sitting weeks … but we’ve been told that Treasury is still drafting, so that may be too soon.” 

Ms Abood told members the association’s lobbying on the new class of advisers has yielded success. 

“What we have advocated for … appears to have been accepted in principle … so matters such as the education requirements. 

“The other thing we advocated for that was good to see is that advice firms are able to offer this class of advice if they wish.”

Mr Jones says the new class of advisers can only provide “safe and simple” advice on matters such as choosing an insurance policy, which will be a “clear boundary” between them and professional financial advisers. 

The government has asked for input on a name for the new class of advisers, and the FAAA has made clear its views, Ms Abood said.

“Our view is the name should not include ‘financial adviser’ [or] ‘financial planner’. I think that there is also interaction with the other elements … for example, what is the scope of their advice, and whatever the name they come up with, it’s got to be pretty clear signalling to the consumer that they are getting something that is different and lesser than what they can get from a professional financial adviser.”