Michelle Levy wants to see 'a diverse industry' following Quality of Advice Review

Ms Levy joined the podcast to discuss the progress on the review set to be released in December, her reaction to some of the submissions put forward to Treasury, and her hopes for the financial advice sector following the QAR.

"What I hope will flow from [the recommendations] is a diverse industry where people are able to get advice all over the place, appropriate to what they're looking for at the time," Ms Levy said on the podcast.

"I want open, helpful, personal conversations across the whole financial system, and I want our consumers to feel confident to engage across that system and to feel confident to go to financial advisers.

"Again, that's a real problem. People don't feel confident at the moment about doing that."

Speaking on a recent SMSF Association panel, Ms Levy said one of the most surprising aspects she’s found in her role leading the QAR is the level of fear felt surrounding ASIC and AFCA.

“I am actually taken somewhat aback and, maybe I shouldn’t be, but there’s a real concern that very minor breaches or very minor things are going to lead to very serious consequences,” said Ms Levy.

“If you look at the cases that ASIC has actually brought, they are in the main quite serious issues — that surprises me, and [it’s] a hard one to solve. How do you address fear? It's obviously having a big effect on what people do.”

Meanwhile, on an episode released earlier this month, the Association of Financial Advisers (AFA) CEO Phil Anderson said the QAR must look at the "significant layers of bureaucracy" forced on the advice sector in recent years.

Mr Anderson said it doesn't surprise him that many of the QAR submissions issued to Treasury have recommended the regulatory burden placed on planners be reviewed.

"When you think about it, we've had such a period of vigorous, almost constant regulatory reform that is just built over the top of each other," Mr Anderson said.

"So we've had the FOFA reforms, we've had the LIF reforms, we've had professional standards. We've had all the recommendations out of the Royal Commission. On top of that, you've had DDO and a range of other reforms. It's all just one layer on top of the other layer."

The ifa Show podcast with Ms Levy is set for release this Wednesday (24 August).