A group of finance lobbies have issued a plea for urgent action on advice deregulation. 

The ‘Joint Associations Working Group’ - a coalition of 13 industry bodies representing investors, wealth managers, accountants and stockbrokers - is calling on the Federal Government to dump its plan to implement “obvious and easy” changes to financial advice laws.

“Urgent action is needed,” the working group wrote in a joint letter to Assistant Treasurer Stephen Jones, obtained by The Australian Financial Review. 

“The government has a rare opportunity to deliver affordable and accessible advice to consumers as an outcome of its response to the [review].”

The group claims Treasury’s Quality of Advice review, chaired by Allens lawyer Michelle Levy, would “fundamentally improve” the lives of everyday Australians if the government takes up its recommendations.

Ms Levy’s draft proposals suggested making it easier for banks and super funds to provide advice by exempting them from Labor’s landmark duty to act in the best interests of clients, introduced in 2012.

The average cost of financial advice has soared by about 40 per cent since 2018, and both sides of politics have expressed a desire to drive that cost down to allow more people to get help with their financial affairs.

Labor assistant treasurer Stephen Jones has described financial advice regulations as a “hot mess”.

More recently, Mr Jones said the government is looking for “easy and obvious wins” on financial advice, including potentially cutting some red tape but. He has appeared wary of a shake-up of consumer protection laws proposed by Ms Levy.

The joint bodies focused on this line in their letter. 

“The reforms must extend beyond easy wins such as streamlining fee disclosure requirements and iron-out obligations like the design and distribution obligations,” they wrote. 

“Australian consumers will be left behind without the adoption of a holistic package of reforms.”

The lobbies called for new models of advice that would allow consumers to access help “how they want it and when they want it, including via digital means”.

They want new legislation that “removes regulatory and disclosure requirements not benefiting consumers” and “reduces the time and cost to prepare quality financial advice”.

The group is made up of CFA Societies Australia, CPA Australia, Chartered Accountants Australia and New Zealand, Institute of Public Accountants, Financial Services Council, Financial Services Institute of Australasia, Stockbrokers and Investment Advisers Association, SMSF Association, the Association of Financial Advisers, Financial Planning Association, Boutique Financial Planning Principals Association, Licensee Leadership Forum and The Advisers Association.