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Posted: 2023-06-13 06:57:04

The Albanese government wants to increase the number of financial advisers in Australia so more households can afford quality financial advice and don't have to rely on advice from 'finfluencers' and unregulated sources online. 

The government says 10,000 financial advisers have left the industry since 2019 in the wake of Hayne royal commission, and it has left a vacuum of quality information for people.

It says there are only 16,000 financial advisers left in the country, and the median cost of financial advice has increased by 41 per cent between 2018 and 2021 as a result, leaving quality advice too expensive for too many households.

To deal with the problem, it says it wants to significantly increase the number of financial advisers in Australia and make it easier for superannuation funds to provide advice to their millions of members who are approaching retirement.

It also hopes to encourage financial advisers with at least 10 years' experience — and a clean regulatory record — to stay in the industry by allowing them to keep practising if they don't have a tertiary qualification.

It's part of the government's response to the Quality of Advice Review, the final report of which was released in February.

The government says it has accepted 14 of the review's 22 recommendations "in full or in-principle," and it will develop legislation over the coming year to deal with them.

It will also introduce legislation to parliament this week aimed at keeping experienced financial advisers in the industry.

The plan to rebuild the financial advice industry 

Stephen Jones, Assistant Treasurer and Minister for Financial Services, outlined the government's plans on Tuesday.

He said the government would tackle the problem in three phases.

In the first phase, it will try to streamline the process of giving financial advice through the channels that already exist.

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