The Federal Government has outlined the benefits of its financial advice reforms, reassuring the sector that the advantages outweigh the costs.

It says the benefits include more engagement with clients, more client-focused advice, lower product fees, greater availability of advice, a more competitive advice market and removal of non-complying advisers.

Parliamentary Secretary to the Treasurer Bernie Ripoll told an Institute of Public Accountants event in Brisbane last week that the Future of Financial Advice reforms will improve the quality of financial advice and benefit consumers.

He sees this leading to greater consumer confidence in the finance industry and more work in the sector, despite initial compliance costs.

Mr Ripoll says the Government has reduced red tape by allowing businesses to structure their remuneration arrangements in any way that will not conflict advice, instead of prohibiting some forms of payment.

The exemption which allows accountants to provide certain advice about self-managed superannuation funds without needing an Australian financial services licence “will be replaced with an appropriate alternative”.

“I know that Treasury and ASIC are working closely with accounting bodies in developing this alternative,” he said.

“While the details of this measure are a matter for [Financial Services Minister] Bill Shorten, I can assure you that the Government is conscious of the concerns of the professional accounting bodies, and is working hard to ensure a workable transition for the profession to the new arrangements.”