According to an Insignia Financial spokesperson:

“We believe access to advice is integral to all Australians as they work towards a comfortable retirement, yet the cost of advice is currently out of reach for most people.

“We welcome the progress towards closing the advice gap and improving the affordability and accessibility of advice provided by the second tranche of Delivering Better Financial Outcomes reforms.

“Proposed measures, such as replacing Statements of Advice with an advice record and removing safe harbour steps from the modernised Best Interests Duty, will reduce regulatory red tape and better enable scaled advice. We know from our own data that it currently takes up to 20 hours to generate advice per client, and these measures will create efficiencies and allow advisers to dedicate more time to serving clients.

“Australians should be able to choose how they receive advice, and we are pleased to see that the framework for the New Class of Adviser (NCA) is competitively neutral.

“The introduction of NCAs, who will be able to provide simple advice, will assist more Australians to better plan for retirement. We are pleased the Government is allowing trustees discretion regarding which services they charge a fee for, so they can meet their best financial interests obligations, while also enabling independent advice businesses to employ NCAs.

“We are eager to see more detail on the proposed list of prohibited topics to ensure consumers receive appropriate advice to meet their needs.

“For the majority of Australians, their superannuation is the second biggest asset they will own outside of their home, which is why it’s so important for members to be engaged both now and into retirement. The introduction of superannuation nudges will provide funds with the flexibility to better facilitate enhanced member engagement.

“It is crucial for the Government to prioritise legislating tranche two to ensure Australians can access the advice they need for a comfortable and secure retirement. We look forward to seeing the detailed legislating and engaging with the Government on its implementation.”

Read the full media release.