Delivering Better Financial Outcomes package
Quality of Advice Review
As recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the then government commissioned a review on the effectiveness of measures to improve the quality of financial advice led by Ms. Michelle Levy. Final report was given to the government in December 2022.
In response to the recommendations of the Review, the government is implementing a number of reforms to the regulation of financial advice through the Delivering Better Financial Outcome package.
The reform package is expected to be progressed in three tranches.
- The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 (the DBFO Act), which received royal assent on July 9. This includes changes to advice fee deduction form, ongoing fee arrangements, FSG, conflicted remuneration and consent for insurance commissions.
You can refer to ASIC DBFO page here - Tranche 2 reforms – exposure draft was released in March 2025 confirming the replacement of Statement of Advice with a Client Advice Record, outlining the scope on what advice topics can be collectively charged and allowing super funds to provide targeted prompt to members. Other reforms that are expected to be introduced under tranche 2 during 2025/26 financial year are modernising the Best Interest Duty, removing the safe harbour steps and introduction of the new class of advisers.
