The Advisers Association (TAA) has urged the profession to consider raising qualification standards in preparation for likely changes after the Quality of Advice Review (QAR) hands its report to the Government this month. 

CEO Neil Macdonald says the current minimum requirement for giving general advice is Regulatory Guide (RG) 146, which sets out minimum training standards that apply to advisers and how they can meet these training standards. 

“RG146 was an accreditation for its time. Following QAR, we will move into a new era for financial advice, an era of growing consumer needs and greater consumer expectations,” Mr Macdonald said. 

The Quality of Advice Review is set to give its report by December 16 to the Government. In its Proposals Paper, reviewer Michelle Levy has recommended broadening the scope of personal advice and that general advice should no longer be regulated or defined. 

Existing consumer protections, and financial services licensee obligations where relevant, would apply, the Proposals Paper says. 

It was also suggested that a “good advice” duty should replace the existing “best interests” test, with related changes to reduce the administrative burden. 

Mr Macdonald says the QAR proposals indicate that individual non-relevant providers will be left to decide what training and education is required for their employees to give simple, “good advice”. 

“We think this would likely result in inconsistent outcomes for consumers, as people won't know what they don't know,” Mr Macdonald said. 

“We therefore think providers across the industry could agree on a common requirement, such as an upgraded RG146, for people giving 'general advice', and for the staff of 'non-relevant providers' providing 'good advice'. 

“This would result in minimum consistent standards being applied across the industry, which should have the flow-on effect of improving consumer confidence.”