What's Happening?
Assured Support, a compliance firm, has responded to the Financial Services Council's (FSC) report on advice licensing, advocating for a shift in focus from institutional convenience to consumer outcomes. The firm criticizes the current licensing structures for failing to address issues highlighted by the Hayne royal commission, such as conflicts of interest and systemic misconduct. Assured Support suggests that regulatory frameworks should prioritize clarity, fairness, and trust for consumers, rather than maintaining outdated distinctions between licensed and self-licensed models.
Why It's Important?
The call for reform in the AFSL licensing framework is crucial as it addresses the root causes of consumer harm in the financial services sector. By focusing on consumer outcomes, the proposed changes could lead to more transparent and accountable practices, reducing the risk of misconduct and improving trust in financial advice. This shift could also encourage more advisers to adopt self-licensed models, fostering a more competitive and consumer-focused industry.
What's Next?
Successful reform will require collaboration between regulators, licensees, and policymakers, with a focus on evidence-based proposals. The ongoing debate presents an opportunity to reshape the culture and expectations of the financial services sector, potentially leading to more effective regulation and better consumer protection.
