Digital advice firm optimistic QAR will ‘reset financial advice’
Ignition Wealth says the final QAR report will help reshape advice and has pushed the government to implement the review’s recommendations in their entirety.
.
Ignition Advice APAC Chief Executive, Craig Keary said the final findings of the Quality of Advice Review (QAR) provides the government will an opportunity to reset the rules around personal financial advice to the benefit of many Australians.
Mr Keary said financial advice in 2023 will be largely driven by how the government decides to respond to the final report handed down by Michelle Levy.
“This is an opportunity for a desperately needed reset of personal financial advice. We hope that the Government opts to implement the Review's recommendations in their entirety, rather than being selective,” said Mr Keary.
Mr Keary explained that following the Royal Commission, financial advice became a cottage industry and became unaffordable for many.
“Tinkering at the edges will not help. Ms Levy clearly understood that and has indicated that her final report largely reflects the thinking in the Proposals Paper,” he said.
For access to advice to improve, Mr Keary said realistic solutions need to be considered including the use of technology to scale advice and make it affordable to all Australians who want and need it.
“Demand for financial advice continues to grow as the population ages; however, how people wish to consume it is rapidly evolving. We have seen an acceleration in digital adoption across most industries and it makes sense that consumers should be able to access financial advice in a way that suits them,” he said.
Mr Keary noted that the combination of technology and humans as part of a digital advice model is becoming more understood.
“Strong evidence out of the UK, as well as our own UK client experience, shows that hybrid adoption leads to greater access and affordability of advice,” he said.
“Bringing technology to financial advice is about growing the accessibility of financial advice. Technology removes the barriers of convenience, cost and confidence to make advice more accessible for all.”
Digital advice, he said, can deliver single issue personal advice for those with simpler or more episodic advice needs.
“It also clearly preserves the important value proposition of financial planners, who serve the more complex needs of consumers who have the need and budget for a holistic approach to managing their finances,” he stated.
“We’re encouraged by the Quality of Advice Review and the significant reference to technology as an enabler for scale and how that can bridge the advice access and affordability gap.
“Implementing digital advice solutions is no longer a multi-year, expensive and complex, high-risk program of work, or enterprise-wide digital transformation. With the right provider, implementing digital advice can be faster, cheaper, and less disruptive than most digital projects.”
Hot Issues
- ATO encourages trustees to use voluntary disclosure service
- Beware of terminal illness payout time frame
- Capital losses can help reduce NALI
- Investment and economic outlook, August 2024
- What the Reserve Bank’s rates stance means for property borrowers
- How investing regularly can propel your returns
- Super sector in ASIC’s sights
- Most Popular Operating Systems 1999 - 2022
- Our investment and economic outlook, July 2024
- Striking a balance in the new financial year
- The five reasons why the $A is likely to rise further - if recession is avoided
- What super fund members should know when comparing returns
- Insurance inside super has tax advantages
- It’s never too early to start talking about aged care with clients
- Capacity doubts now more common
- Most Gold Medals in Summer Olympic Games (1896-2024)
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
January - March 2023 archive
- China’s economic rebound lowers the odds of a global recession
- No plans to extend NALI compliance relief, says ATO
- Why most investors want human advice
- Comparison: How Long It Takes To Decompose?
- Contribution caps to stay the same for 2023–24 year
- Three simple steps for financial wellness
- Draft super objective to ‘protect super from interference’
- Beating back inflation, but at what cost?
- Why superannuation fund fees matter
- 100 Most Influential people in the world.
- TBC set for double indexation from 1 July
- ATO issues fresh warning on illegal early access schemes
- When to be proactive about your portfolio
- Digital advice firm optimistic QAR will ‘reset financial advice’
- 2022 by the numbers
- ATO raises alarm on asset protection scheme for SMSFs
- Downsizer age reduction now in force
- SMSFs cautioned on ‘strict conditions’ with SMSF lending
- Countries with the highest GDP per capita between 1800-2040
- Transitioning into retirement: What you should know
- Auditor flags surprising traps with e-signatures and SMSFs
- A review of the last two decades in investing