Opinion
Why rules need to change on SMSF financial advice
The Future of Financial Advice Review offers an opportunity to get the balance right on compliance versus cost.
John MaroneyContributorFor self-managed super fund investors, financial advice has gone from the sublime to the ridiculous. Before the 2012 Future of Financial Advice (FOFA) reforms, some would have argued a necessary level of consumer protection was lacking. But after the FOFA reforms and then the 2018 Hayne royal commission, the pendulum has swung too far the other way.
SMSF investors suffer from a financial advice system that is so burdened by layers of regulation and complexity that it is collapsing under the weight of over-regulation that is prescriptive and punitive – with little discernible benefits to consumers. It is a system primarily driven by the need to avoid litigation rather than improve advice.
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