Below is a summary of the important updates and changes to be aware of so you can continue to meet your compliance obligations.  If you have any questions relating to this update, or any other compliance-related matter, please contact Geoff Byrnes.

Merger between FPA and AFA

Members of the Association of Financial Advisers (AFA) and the Financial Planning Association of Australia (FPA) have voted in favour of the proposed merger of the two associations.

97 per cent of votes were in favour of the merger, with the merger requiring 75 per cent of votes to be in favour to proceed.

The merged association will be named the Financial Advice Association of Australia Limited. Legal completion is expected to take place on 3 April 2023 and a transition period will run from April to June.  The transition is expected to be complete by 1 July 2023.

The Financial Advice Association of Australia will give the financial advice industry a strong, united voice to government, regulators and other stakeholders at a crucial turning point for the profession with the proposed changes from the Quality of Advice Review.

Quality of Advice Review update

At this stage, the government plans to stress-test the recommendations and undertake further consultations.  ASIC is currently awaiting further details on how the recommendations could be implemented into law and what its role could look like in the new system.

I am hearing voiced concerns around consumer protection and the importance of balancing it with access to advice and the quality of that advice.  The affordability of advice has been an issue for a while now due to over-compliance and the inability to provide paperwork that is affordable, and not always ‘good advice’ in some respects.

It’s believed that having super funds providing advice has an important role in this space as ‘trusted partners’ for their members. I can hear a Royal Commission again to be honest. I am finding the QAR and its potential requirements an issue, and I believe that professional indemnity insurers will have a lot to say.

We will await to find out from the government when it will be considered and any changes.

Changes to superannuation tax breaks

The government announced from 1 July 2025 a 30 per cent concessional tax rate will be applied to future earnings for superannuation balances above $3 million.

This measure is not yet law and further consultation will be undertaken with the superannuation industry and other relevant stakeholders.  More to follow.

Geoff Byrnes

Geoff ensures that our financial advisers follow their compliance duties and legislation so that our clients’ best interests are always at the heart of what we do.  Read his full bio here.