Late last year, the ALRC tabled an interim report in Parliament detailing the complexity of Commonwealth legislation regulating corporations and financial services with an aim of promoting meaningful compliance with the substance and intent of the law.
“The ALRC’s task is not simply to ‘tidy up’ the legislative framework in service of theoretical objectives. At the core of this inquiry is the importance of ensuring the law is fit for purpose,” ALRC president, the Honourable Justice SC Derrington said at the time.
“The law must facilitate industry, recognising the dynamic nature of the financial services sector and its significant contribution to the Australian economy. At the same time consumers need to be able to understand and navigate the law to protect their legal entitlements.”
Now, industry stakeholders are being called on to provide feedback about the report to the ALRC.
“The ALRC’s focus is on how the current law can be simplified and made easier to navigate,” a statement given to SMSF Adviser’s sister title, ifa, read.
“Input from those ‘at the coalface’ – such as financial service providers, financial advice businesses, financial advisers, and clients – is critical to understanding why the current law is so complex and how it could be improved.”
Submissions about the proposals and questions raised in the report can be put forward to the ALRC before 25 February; however, the independent agency said it would hold webinars, consultations and events this year to continue the consultation process.
Another call for submissions will be made following the release of a new report in late 2022.
“The ALRC is also particularly conscious of Treasury’s Quality of Advice review to be conducted in 2022,” the statement continued.
“That review presents another opportunity for the financial advice sector to engage with the law reform process, and the ALRC will follow it closely.”
This is easy, throw the whole lot out:
1. establish a professional standards board (with teeth) to regulate advice and comprised predominantly by highly ethical and principled advisers
2. remove advice completely from ASIC but have them regulate product after defining clearly what an advised client is and what is a non advised client.
If they are advised then the professional standards (with teeth) can deal with errant advisers and ASIC can regulate the producers, floggers, marketers, spivs and shysters.