Statement from AMP Chief Executive Alexis George:
AMP welcomes the Government’s comprehensive roadmap for financial advice reform, which will expand the delivery of advice to millions more Australians. It will make a meaningful difference to the lives of many at a time when financial advice has never been needed more.
The removal of the Safe Harbour steps in favour of a principle-based approach to the Best Interests Duty will empower financial advisers, lead to new channels for the delivery of financial advice and make advice accessible to many more Australians.
We welcome the Government’s move to recognise the vital role that superannuation funds play in supporting Australians either in, or approaching, retirement. With the right frameworks and correct safeguards in place, this move will ensure more super fund members get better retirement outcomes by having access to a broad continuum of advice.
Importantly, this new tier of advice must sit cohesively within the broader advice ecosystem, including full scale face-to-face advice, new digital solutions and other, more basic educational services already provided by super funds. This will ensure there is a clear, scaled advice pathway for consumers as their needs evolve.
We also see these reforms as supporting a greater uptake of digital advice solutions by providers, and this is an area that AMP has been investing in.
We intend to work proactively with Government to ensure the implementation of these reforms is practical and workable, including the use of appropriate terminology to enshrine the term “financial adviser” as sufficiently different from the terminology of the proposed new-tier of advice provider.
We will assist Government to finalise these important changes to help streamline the advice process as quickly possible, as we work to address the advice gap and support Australians facing cost of living pressures and those preparing for retirement.