Federal Assistant Treasurer Josh Frydenberg has called on life insurers to help advisers enact reforms proposed in the new industry framework.

“I am very conscious of the challenges posed by industry reform of this scale, particularly as a result of the many discussions I’ve had with advisers since being appointed Assistant Treasurer,” he told the Financial Services Council conference on the Gold Coast last Friday.

“If there is a message I can provide the life insurers, it is that advisers are looking to you to help them transition and navigate these significant reforms.”

Mr Frydenberg says the reforms “should be seen as a shared goal”, and the quality of advice must improve.

“Australians need the industry to come together to improve the quality of advice and to ensure it remains accessible to those that need it most.”

He says reviews by regulators and a previous government report show it is time for reform of advice.

“It was clear that it was time to improve consumer outcomes and remove incentives for inappropriate policy replacement. Earlier this year I noted that the status quo was no longer sustainable and called on industry to take the lead on reform before the Government was forced to.”

Mr Frydenberg says the industry agreement is a compromise, in which “neither side got everything they wanted, but by coming to the table each side was able to obtain a better outcome for their members than they would have in isolation. The Government is considering industry’s proposals as part of our response to the Financial System Inquiry.

“Of course, implementing the proposals will require ongoing co-operation.”

Mr Frydenberg says the Government will work on the framework’s detail, but the ultimate goal is consumer protection.

“This objective includes an expectation that where substantial savings are generated from the reforms, these would be passed on to the consumer. We are currently exploring additional mechanisms to support this principle.”