Submission on Delivering Better Financial Outcomes
On 2 May 2025, the Institute of Financial Professionals Australia (IFPA) lodged its submission on the Delivering Better Financial Outcomes exposure draft legislation. While IFPA welcomes the Government’s intent to improve the accessibility, affordability, and client-centricity…
On 2 May 2025, the Institute of Financial Professionals Australia (IFPA) lodged its submission on the Delivering Better Financial Outcomes exposure draft legislation. While IFPA welcomes the Government’s intent to improve the accessibility, affordability, and client-centricity of financial advice through the Quality of Advice Review (QAR) reforms, we are concerned that the draft legislation does not go far enough in addressing the structural issues that currently impede advice delivery. In some respects, it introduces further complexity rather than streamlining the system.
IFPA has made several recommendations to improve the legislation, including:
- Simplify advice documents by adopting a principles-based approach, focused on professional judgement rather than legal prescription. If written advice is required, it should be clear, practical, and easy for clients to understand. The purpose must be to inform and support the client, not to tick legal boxes.
- Introduce a fee-for-service model so members only pay for advice they use, rather than collective charging.
- Require clear disclosures where advice is limited to fund-specific products and not holistic in nature.
- Define the boundaries of trustee-provided advice, with trustees informing members to seek advice from a financial adviser where a member’s needs fall beyond their remit.
- Remove proposed civil penalties for not providing a client advice record where there’s no consumer harm.
Further details regarding our recommendations can be found in our submission and media release.
