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The lonely Senate voice backing advisers on annual renewals


Brockman used his speech in the Senate dealing with passage of the
Hayne Royal Commission Response Bill 2020 (on Annual Renewal) said he feared that the suite of changes made to financial planning over the past decade “has created an environment where the cost of advice will increase and some Australians will not be able to afford high-quality financial advice and so will be forced into more set-and-forget products, like superannuation”.
“In an environment where you have best-interest obligations and where you have an end to trailing commissions, perhaps something we could look at in future is whether the yearly opt-in is the right time frame,” Brockman told the Senate. ....

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Annual renewal unnecessary: AFA | Money Management


“The inevitable result of this is an increasing number of unintended consequences which will have negative implications for financial advice practices and flow on effects in terms of extra cost and complexity for clients. These issues will need to be fixed down the track.”
While the AFA was “pleased” the Government had made significant improvements to the final
Hayne Royal Commission Response No. 2 Bill, it said it was disappointment it had failed to take onboard its feedback.
The Government would need to work out how to fix the important issue with timing differences with fee disclosure statements (FDSs), that had led to ASIC recommending that advisers manually check product systems to confirm that FDSs were correct. The failure to address this as part of this reform, when the Government was simultaneously talking about red tape reduction, was disappointing.   ....

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