The Financial Services Council (FSC) says the Quality of Advice Review proposals paper’s recommendations set out a “sustainable vision” for the regulation of advice in Australia.

CEO Blake Briggs today called for the implementation of the proposals made by Reviewer Michelle Levy, whose key recommendations include expanding the definition of personal advice and deregulating general advice.

“The policy challenge now is to achieve a regulatory framework that not simply stops bad advice but offers every incentive to deliver good advice for individual consumers,” Mr Briggs said.

He says unnecessary red tape has pushed the cost of providing advice to more than $5000, meaning fewer consumers are able to access advice and placing them at risk of making poor financial decisions.

“Failure to fix the regulatory framework will have severe consequences for the financial decisions and empowerment of millions of Australians which is why the Government should commit to implementing these reforms to make advice affordable and accessible,” Mr Briggs said.

FSC has also outlined additional suggestions in its submisson to the Review for consideration as Ms Levy prepares her final report, which is expected to be submitted to the Government by December 16.

The peak body urged the Review to consider co-design of the reforms with industry and implement them in full as soon as possible and with a 12-month lead-in time.

It also says the Review’s proposed principles-based framework should enable a level of regulatory oversight to industry, or an independent body equipped with the technical expertise to administer that framework.

“We agree that more advice should be regulated as personal advice, as opposed to general advice or intra-fund advice,” the FSC submission says, adding Ms Levy has set out a “sustainable vision” for the industry with her proposals paper.