Speaking at a Stockbrokers and Financial Advisers Association conference, Assistant Treasurer Stuart Robert spoke plainly about the re-elected Coalition Government’s plans for the advice industry.
He said that while advice “has been an important part of the wider Australian economy, generating billions in revenue and employing tens of thousands of people,” the landscape is “evolving and we need to adapt.”
Robert referenced the fact that most major banks are selling their wealth arms, and that the same time “financial advisers have been exiting institutionally affiliated and owned businesses to work for privately owned firms.”
Alongside these trends, Robert said “the remuneration models for many in the industry are also changing.” Pointing to the Royal Commission, which recommended ending grandfathering of conflicted remuneration, he said “grandfathering has now been in place for over five years, providing industry with sufficient time to transition to the new arrangements.”
Robert argued that given this, it was, ultimately, “now appropriate for grandfathering to end.”
“The Government is in the process of implementing the Hayne recommendation,” he continued. “It should be noted that many banks and other financial institutions, in response to Hayne, have already off their own bat banned grandfathered conflicted remuneration – to the extent that they can.”
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