clarity on their obligations, with several practical case studies, with the aim of providing cost-effective solutions to about 89 per cent of Australians who are unable to access professional financial advice. Recent figures published by researcher Adviser Ratings, showed that the median fee for financial advice in the Pacific nation reached $3256 per client last year, a 16 per cent increase from a year ago, while the media fee has also grown by over 30 per cent in the past three years.
In a consultation on advice affordability published earlier this year, the ASIC said a number of challenges were identified in providing limited or scaled advice services, including the lack of clarity among advisers regarding regulatory requirements.
Accordingly, the recent guidance issued by the financial services regulator was welcome by consumer groups, who are of the view that the ASIC’s decision to address some of the worries faced by the industry might help more Australians access critical guidance about their retirement. “Scaled advice is an important area to get right, as it can reduce cost by giving people just the advice they need,” Xavier O’Halloran of Super Consumers Australia, a consumer advocacy group in the superannuation sector, said. “There has been a tendency in the past for compliance lawyers to overcomplicate every aspect of advice and arguably go beyond what is required.”
