Wealth managers and the corporate regulator have warned that over-regulation has blocked ordinary Australians from getting advice about how to manage record superannuation and household wealth balances.

Renato Mota, chief executive of Australia’s largest financial adviser, IOOF, said new laws associated with the Hayne royal commission had the unwanted consequence of driving up the cost of advice, with investors forced to pay $5000 for full-service advice or go it alone in the volatile post-pandemic markets.