Attending the Advice Policy Summit (APS) on February 10-11, 2025, at Old Parliament House in Canberra was an enlightening experience. Here are the key takeaways from each section of the summit:
This year’s summit aimed to forge a consensus on legal reforms to enhance access to affordable and quality financial advice. It brought together over 200 representatives from various sectors, including practising advisers, superannuation fund executives, lawyers, academics, and consumer groups.
Key Discussions and Panels
Outgoing Minister for Financial Services Stephen Jones opened the summit with a keynote address on financial advice reform and the upcoming federal election. He highlighted the urgency of passing the Delivering Better Financial Outcomes (DBFO) package, which includes contentious elements like the scope and remuneration of the new class of advisers. He emphasised, “We must ensure that financial advice is accessible and affordable for all Australians.”
Regulatory Priorities and Challenges
ASIC Commissioner Alan Kirkland provided an overview of the regulatory framework and enforcement priorities for 2025, emphasising the need for more straightforward guidelines on issues such as SMSF advice, the length and scope of Statements of Advice (SOAs), and the line between personal and general advice. He noted, “Our goal is to strike the right balance between protecting consumers and enabling innovation in the financial advice sector.”
Superannuation and Retirement Advice
Discussions focused on the evolving models of intra-fund and personal advice offered by superannuation funds. Panelists stressed the importance of the Retirement Income Covenant in shaping sector attitudes towards advice and the need for policy changes to ensure quality service for members. Greg Cook, CEO of Eureka Whittaker Macnaught, stated, “We need to adapt our advice models to serve the diverse needs of our members better.”
Insights from Industry Leaders
Michelle Levy, who led the Quality of Advice Review, reflected on her past recommendations and the current state of financial advice reforms. Former federal Treasurer Joe Hockey provided insights on the second Trumpian age and its implications for financial services reform, noting the potential impact on global markets and regulatory environments. Hockey remarked, “Understanding the geopolitical landscape is crucial for navigating the future of financial services.”
Networking and Collaboration
The summit facilitated meaningful connections and fostered a collective resolve to build a world-class, consumer-oriented advice ecosystem. Delegates appreciated the diverse range of perspectives and the willingness to collaborate, as evidenced by the 82.6% of attendees who rated the event as extremely useful. Andrew Wallace, Financial Advice Leader at Mercer, commented, “It was terrific to have such a varied group in one room and having the time to discuss these issues in more depth.”
Looking Ahead
The financial services industry must continue to work together to advocate for financial advice’s social and economic value, with ongoing involvement in the public policy process and a commitment to collaboration. As Blake Briggs, CEO of the Financial Services Council, said, “We got very close to a formal accord, and we must maintain this momentum to achieve meaningful reforms.”
Conclusion
The summit underscored the importance of collaboration and open dialogue in addressing the financial advice industry’s challenges. The event highlighted the need for clear regulatory guidelines, innovative advice models, and a unified approach to advocating for the value of financial advice. As we progress, it is essential to build on the progress made at the summit and continue working towards a more accessible and consumer-oriented financial advice ecosystem. The insights and connections gained from this summit will undoubtedly shape the future of financial advice in Australia.
Click here to download a copy of the APS Key Takeaways 2025.
