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To read Ignition’s submission to the Quality of Advice Review Proposals Paper click here

To read our in depth analysis and Ignition house views on the Proposals Paper click here

If there’s a theme running through the Quality of Advice Review proposals, it’s that perfection has become the enemy of the good when it comes to financial advice in Australia, according to Ignition Advice.

In its analysis of the Proposals Paper, Ignition said that since the Hayne Royal Commission, advice quality has indeed improved but at great cost, with the industry shrinking and retreating upmarket.

As a result, advice has become more complex, less accessible, and significantly more expensive, placing it out of reach for many who might benefit from it.

Ignition said it backs the Quality of Advice Review proposals and is supportive of the Good Advice model as principles-based, simpler, and more direct.

Combined with proposals including relaxing documentation requirements such as Statements of Advice (SoAs), encouraging institutional participation, broadening the definition of who can provide personal advice, and delivering digital advice, Ignition believes a good advice standard should substantially increase the supply of advice, particularly for simple advice topics, and improve the financial position for a greater number of Australians.

Ignition Advice Asia Pacific CEO Craig Keary says that while Australia has a large advice problem; it is fortunately very resolvable. 

“Ms Levy offers a new model – Good Advice. She is explicit that this is not necessarily the ‘best’ advice in any situation, but advice which is reasonably likely to benefit the client based on their circumstances at the time the advice is given,” Keary says.

“While no set of proposals is perfect, the good advice model offers a realistic path to high quality financial advice being available to all Australians who would benefit from it, in ways that are accessible and affordable.

“In particular, the Proposals Paper offers an approach to broaden how advice is provided via more institutional involvement, and a wider spread of people within institutions delivering simpler advice.  Consumers expect advice from their institution, institutions should be providing it, and ultimately digital advice will make this achievable in a fully compliant, affordable, and accessible way.”