The Federal Government continues to work on regulatory amendments through the Simpler Regulatory System Bill, but the more complex sales recommendation will be developed by further consultation.

Parliamentary Secretary to the Treasurer Chris Pearce says the proposal has sparked considerable debate and discussion, and he has challenged the industry to come up with the right balance.

Speaking at an Investment and Financial Services Association (IFSA) luncheon last week, Mr Pearce said the sales recommendation proposal aimed to deal with some of the imbalance that arises from the current law’s definition of general and personal financial advice.

“The proposal was designed to make it quite clear to consumers as to when they are receiving financial advice, as distinct from what is really a ‘pure’ product sales presentation,” he said.

Mr Pearce wants a realignment of the law to the reality of the day-to-day market. But because the proposal deals with investor perceptions, it raised complex issues. The large number of detailed comments received indicate the proposed response would not produce an adequate balance.

“Accordingly, I have tasked Treasury with finding a better solution, with endorsement from as many stakeholders as possible. Clearly, combating the ‘sales’ versus ‘personal’ advice issue will require considerable further consideration.”

The Government is refining the possible options and Treasury will be convening a wider public forum later this month.