The future of the financial planning industry lies in the value of advice provided and how advisers communicate with consumers, according to Parliamentary Secretary to the Treasurer Chris Pearce.

Mr Pearce told delegates at last week’s Financial Planning Association (FPA) conference in Melbourne the industry has “done the hard yards” when it comes to financial services reform, but the Australian Securities and Investments Commission still has some work to do to ensure regulation is effective.

“Our job now is to refine the soft infrastructure to facilitate efficiency, improve the productive capacity of the economy and allow the market to operate without the need for heavy-handed regulation or government intervention,” he said.

Mr Pearce says planners have done a lot in recent years to clean up the way they do business, but they need to keep up the hard work. The industry is far more harmonised than it was a decade ago, and in the next decade he expects Australia’s financial services providers to be regarded as world class.

He says it’s pleasing to see planners rising to the challenge when it comes to helping consumers maximise their wealth though government initiatives like Simpler Super and Understanding Money.

The Federal Government is focusing on ensuring regulation works as intended, without affecting the natural operation of the market.

“This is very much my focus. My goal is to ensure that the regulatory system continues to produce efficient and optimal outcomes to sustain growth, and further advance our prosperity well into the future.”

Mr Pearce praised the FPA for its contribution to enhancing the professionalism of planners. He says initiatives such as its principles for managing conflicts of interest and value of advice campaign are helping to empower consumers to take charge of their finances and recognise the value of sound financial advice.