Assistant Treasurer Stephen Jones on Monday gave a “huge hint” that the government wants to make it easier for super funds to provide more advice to their members.
Superannuation funds will be able to provide simple financial advice to the millions of Australians approaching retirement under a controversial proposal likely to be adopted by the Albanese government, but big banks may be left out.
Ms Levy proposed banks, insurers and super funds be encouraged to provide cheap and simple forms of advice by exempting them from the duty to act in clients’ best interests. Her recommendation to scrap that duty for some financial institutions was slammed as a “recipe for another royal commission” by consumer advocacy group Choice.
He said he would be “very, very surprised” if the major banks returned to the business of comprehensive financial planning. Asked whether they could provide more simple forms of advice to customers akin to super fund advice, Mr Jones said it would “depend where we get to on the regulations”.Commonwealth Bank, Westpac, National Australia Bank and ANZ all ceased providing advice to retail customers after the damning royal commission.
He said he would not be able to take a recommendation to cabinet before the federal budget in May, but would provide “clarity” to industry before the end of the year. The minister said that would still reflect “lightning speed” compared to implementation of other Treasury portfolio inquiries.
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