30th Jan AMA: I'm Phil Anderson, GM Policy, Advocacy & Standards at FAAA, Ask Me Anything!

Finally, rationalisation of advice documents is probably the most critical part of the DBFO reforms. We are optimistic that this will deliver a meaningful benefit to the advice profession. Once again, professional judgement, rather than a process based approach will be an important outcome.

Hi Mat, thanks for your question. Disappointingly there has been no further announcements on DBFO Tranche 2 so far in 2025.We have been waiting for the release of the DBFO Tranche 2 draft legislation, however that is yet to arrive. This is all at the time when we are awaiting an election to be called, and have earlier today been advised that the Minister is retiring from politics. As advice documentation is part of the DBFO Tranche 2 package, by direct implication, we have not heard anything further on that either.

With respect to the repeal of the safe harbour, we are supportive of the rationale for this. Compliance with the safe harbour has become a demanding part of the process of delivering financial advice. ASIC class order 14/923 substantially increased the record keeping obligations with respect to demonstrating compliance with the Best Interests Duty, that required documentation of action taken with respect to every step in the safe harbour. This and other action from ASIC resulted in the creation of lengthy check-off lists, which has put a real handbrake on the delivery of financial advice. For this reason alone, we expect that the removal of the safe harbour will improve the efficiency of the delivery of financial advice.

We favour a move to a world where advisers can rely upon their professional judgement, rather than detailed record keeping, as is currently required.