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FPA: financial services reform demands change to legislation

The FPA has called on the Federal Government to amend legislation to reduce the cost and complexity of financial advice.

In a submission to the Government-appointed Financial Services Working Group, the FPA criticised the narrow scope of the proposed reforms.

The working group is currently focused on simplified investment choices within superannuation accounts.

FPA CEO Jo-Anne Bloch believes the group’s limited focus will not allow it to address wider concerns around the cost and accessibility of financial advice.

“There is a need to focus on fixing the problems inherent in the financial services reform regime,” she said.

The FPA says the Corporations Act should be amended to improve the definition of financial advice and to rationalise the disclosure system.

The peak planners’ body wants advisers bound by minimum training standards and is calling on the Government to establish a consumer financial literacy and capability campaign.