The Federal Government is committed to reforms that will lead to “meaningful” changes for the advice industry and consumers, Financial Services Minister Stephen Jones said. 

He says the commitment extends to replacing the statement of advice (SOA) model and removal of safe harbour steps from the best interests duty obligation. 

The assurance from Mr Jones comes after the Federal Government’s first tranche of advice reforms drew a mixed response from the industry. The first tranche has left out, for now, SOA and safe harbour steps reforms as recommended by the Quality of Advice Review final report. 

But the industry has welcomed proposed legislative amendments to streamline ongoing fee renewal and consent requirements as well as remove the obligation to provide a fee disclosure statement. 

“I know that there is eagerness to see needed changes to the statements of advice. And you can add in the safe harbour steps as well,” Mr Jones said in a speech to the Financial Advice Association Australia’s (FAAA) congress in Adelaide last week. 

“So I reiterate that the Government is committed to replacing statements of advice. And removing the safe harbour steps.” 

He says SOA and safe harbour reforms “are slightly more complex” and that the Government’s approach was to start the advice reform program with “the obvious things” where there was agreement on the way forward. 

“This first tranche of legislation reflects the things the Government could ask the drafters to write immediately. And this is only the start of the reforms needed,” Mr Jones said. 

On the current legislative requirements, he says rules that were intended to protect consumers have instead materialised as unnecessary and unused documentation at best. 

“We can do better. We also need to future‑proof any changes to different business models. And be neutral towards the different technological modes of delivery,” Mr Jones said. 

“So we have engaged in meaningful, but not endless, consultation. Rather than dictating to industry, I want to make sure we make a meaningful difference that sets up the advice industry to support better outcomes for consumers. 

“So that we do this once and we do it right…because we cannot afford to get it wrong for the millions who need to be able to trust the process for their financial decision‑making.”