1 00:00:04,019 --> 00:00:06,840 Sean Aylmer: Welcome to the FEAR & GREED Business Interview. I'm Sean Aylmer. 2 00:00:06,870 --> 00:00:10,978 Sean Aylmer: Today is International Women's Day. The United Nations theme for 3 00:00:10,980 --> 00:00:14,369 Sean Aylmer: this year is Count Her In: Invest in Women, Accelerate 4 00:00:14,370 --> 00:00:17,070 Sean Aylmer: Progress. And around the country a number of events are 5 00:00:17,070 --> 00:00:20,878 Sean Aylmer: taking place with a focus on accelerating gender equality through 6 00:00:20,880 --> 00:00:24,660 Sean Aylmer: economic empowerment. This includes everything from the importance of connecting 7 00:00:24,660 --> 00:00:27,450 Sean Aylmer: women with resources so they can start their own business 8 00:00:27,719 --> 00:00:30,629 Sean Aylmer: right through to closing the gender gap in employment and 9 00:00:30,630 --> 00:00:33,538 Sean Aylmer: pay. I wanted to look in particular at the importance 10 00:00:33,540 --> 00:00:36,779 Sean Aylmer: of financial literacy, and as part of that, the role 11 00:00:36,870 --> 00:00:40,530 Sean Aylmer: and accessibility of financial advice. Sarah Abood is the chief 12 00:00:40,530 --> 00:00:44,970 Sean Aylmer: executive of the Financial Advice Association Australia. Sarah, welcome back 13 00:00:44,970 --> 00:00:45,720 Sean Aylmer: to FEAR & GREED. 14 00:00:46,200 --> 00:00:47,339 Sarah Abood: Thanks very much, Sean. 15 00:00:47,880 --> 00:00:51,659 Sean Aylmer: What does financial literacy mean for gender equality in this 16 00:00:51,659 --> 00:00:54,570 Sean Aylmer: country and how big is the gap at the moment? 17 00:00:55,260 --> 00:00:58,830 Sarah Abood: Well, that's a big question. I think without a doubt 18 00:00:58,890 --> 00:01:01,770 Sarah Abood: there's a gap in financial literacy across the whole country, 19 00:01:01,770 --> 00:01:05,429 Sarah Abood: and that applies to both men and women. We know 20 00:01:05,759 --> 00:01:10,109 Sarah Abood: that people are not leaving school or even university with 21 00:01:10,109 --> 00:01:13,860 Sarah Abood: necessarily great life skills in terms of how to manage 22 00:01:13,860 --> 00:01:17,310 Sarah Abood: your money and understanding of what the different structures and 23 00:01:17,310 --> 00:01:20,970 Sarah Abood: products and opportunities there are out there for people. And 24 00:01:20,970 --> 00:01:24,419 Sarah Abood: I think that's really disappointing. I think it's incredibly important 25 00:01:24,780 --> 00:01:28,170 Sarah Abood: that these skills be taught to all Australians because we 26 00:01:28,170 --> 00:01:32,010 Sarah Abood: all have a need, a really deep need for economic 27 00:01:32,069 --> 00:01:37,140 Sarah Abood: independence and financial autonomy. It's just so important to have 28 00:01:37,140 --> 00:01:40,590 Sarah Abood: that confidence in your own future. A lot of people 29 00:01:40,590 --> 00:01:43,889 Sarah Abood: are disadvantaged when they don't have an understanding of these 30 00:01:43,889 --> 00:01:47,789 Sarah Abood: things, and it's definitely a factor in cyber crime and 31 00:01:47,789 --> 00:01:51,030 Sarah Abood: the levels of scams and frauds and so on that 32 00:01:51,030 --> 00:01:55,680 Sarah Abood: are being perpetrated, because to many people these fraudulent providers 33 00:01:55,890 --> 00:02:00,990 Sarah Abood: look like real advisors. The advice sounds really good and 34 00:02:00,990 --> 00:02:05,010 Sarah Abood: often people don't necessarily have the skills or knowledge to 35 00:02:05,010 --> 00:02:07,439 Sarah Abood: sort out the great advice and the things that are 36 00:02:07,439 --> 00:02:09,810 Sarah Abood: going to help them from the things that are just going 37 00:02:09,810 --> 00:02:12,660 Sarah Abood: to rip them off. So I think it's an incredibly important topic. 38 00:02:14,370 --> 00:02:16,709 Sean Aylmer: I mean, is there actually a gender gap in financial 39 00:02:16,710 --> 00:02:20,038 Sean Aylmer: literacy? So I'm sure kids who are 18, leaving school, 40 00:02:20,040 --> 00:02:24,000 Sean Aylmer: that's kind of one cohort, but I suppose the 40, 50- year- 41 00:02:24,000 --> 00:02:28,380 Sean Aylmer: old cohort between men and women, it does seem, I mean 42 00:02:28,440 --> 00:02:30,720 Sean Aylmer: from what I read, that there is some sort of 43 00:02:30,720 --> 00:02:32,250 Sean Aylmer: financial literacy gap there. 44 00:02:32,910 --> 00:02:35,969 Sarah Abood: Yeah, look, you're right, the studies, there are many studies 45 00:02:35,969 --> 00:02:38,250 Sarah Abood: that are done in this area, do continue to show a 46 00:02:38,250 --> 00:02:41,459 Sarah Abood: gap, I think, between men and women in this space. 47 00:02:41,459 --> 00:02:45,210 Sarah Abood: The gap's closing, but it's closing very, very slowly and there's 48 00:02:45,210 --> 00:02:49,619 Sarah Abood: no doubt that there is inequality in that space. And 49 00:02:49,620 --> 00:02:54,480 Sarah Abood: sometimes within relationships, it's probably still the case that the 50 00:02:54,480 --> 00:02:58,829 Sarah Abood: male partner is often taking on more responsibility and more 51 00:02:58,829 --> 00:03:02,280 Sarah Abood: of a role in managing the finances and making the 52 00:03:02,280 --> 00:03:06,510 Sarah Abood: financial decisions. And that becomes a problem, of course, because 53 00:03:06,510 --> 00:03:11,099 Sarah Abood: we know that over 40% of partnerships will end before 54 00:03:12,150 --> 00:03:16,619 Sarah Abood: both one partner dies, and often that can pinch the 55 00:03:16,619 --> 00:03:20,460 Sarah Abood: female partner into a really difficult state of economic insecurity because they don't 56 00:03:21,270 --> 00:03:24,690 Sarah Abood: have an understanding of how the family's finances have been 57 00:03:24,690 --> 00:03:28,859 Sarah Abood: managed, where the money is, where the super is and so on. 58 00:03:29,550 --> 00:03:32,460 Sarah Abood: I think it's a stat that's well understood as well, 59 00:03:32,460 --> 00:03:36,180 Sarah Abood: that the fastest growing group of homeless people is actually 60 00:03:36,180 --> 00:03:40,140 Sarah Abood: women over 50 in this country, and very frequently it's related 61 00:03:40,140 --> 00:03:45,600 Sarah Abood: to relationship breakdown. So that's tragic and it's so important for us to close that gap. 62 00:03:46,200 --> 00:03:48,390 Sean Aylmer: How do we do that? Where do we start? 63 00:03:48,960 --> 00:03:55,050 Sarah Abood: Well, I think we start with school. So the FAAA has got some material together 64 00:03:55,170 --> 00:03:57,839 Sarah Abood: that we'll be launching for Global Money Week quite soon 65 00:03:58,230 --> 00:04:02,550 Sarah Abood: that's very much focused on financial literacy in school and 66 00:04:02,550 --> 00:04:06,809 Sarah Abood: helping young children develop those skills and that confidence. But the 67 00:04:06,809 --> 00:04:11,010 Sarah Abood: other important point, of course, is that financial advice is 68 00:04:11,010 --> 00:04:13,650 Sarah Abood: a really important way that we can help make a 69 00:04:13,650 --> 00:04:17,670 Sarah Abood: change in that space. Anyone who seeks financial advice from 70 00:04:17,670 --> 00:04:21,359 Sarah Abood: a professional financial advisor, whether as an individual or as 71 00:04:21,360 --> 00:04:23,819 Sarah Abood: a couple, that is going to be an important part 72 00:04:23,820 --> 00:04:26,909 Sarah Abood: of the relationship. You can't be recommended a product, you 73 00:04:26,910 --> 00:04:30,539 Sarah Abood: can't be suggested to buy a product without informed consent. 74 00:04:30,539 --> 00:04:34,980 Sarah Abood: So advisors spend a lot of their time ensuring that 75 00:04:34,980 --> 00:04:38,789 Sarah Abood: people do truly understand what the strategies are that they're 76 00:04:38,790 --> 00:04:43,050 Sarah Abood: recommending to help people achieve their goals, and that they 77 00:04:43,200 --> 00:04:46,409 Sarah Abood: understand the products, the outcomes, and so on, and how 78 00:04:46,410 --> 00:04:49,560 Sarah Abood: they will help you get there. So financial advice has 79 00:04:49,560 --> 00:04:52,860 Sarah Abood: a really big role to play in helping close this gap. 80 00:04:53,700 --> 00:04:56,370 Sean Aylmer: Okay, so on FEAR & GREED we are always talking about 81 00:04:56,370 --> 00:04:59,669 Sean Aylmer: the need to see a financial advisor. It's not as 82 00:04:59,670 --> 00:05:03,509 Sean Aylmer: easy, though, as it may sound because there's actually not 83 00:05:03,509 --> 00:05:06,329 Sean Aylmer: enough financial advisors out there. I remember we spoke early 84 00:05:06,330 --> 00:05:09,089 Sean Aylmer: last year. Then in December, the federal government announced the 85 00:05:09,089 --> 00:05:12,000 Sean Aylmer: last part of its response to the quality of advice 86 00:05:12,000 --> 00:05:16,020 Sean Aylmer: review came up with this idea of a qualified advisor, 87 00:05:16,290 --> 00:05:19,649 Sean Aylmer: typically working within a bank or a financial institution, to 88 00:05:19,650 --> 00:05:22,589 Sean Aylmer: provide advice to customers. I know you're not a big 89 00:05:22,589 --> 00:05:25,980 Sean Aylmer: fan of that qualified advisor idea. Just explain what it 90 00:05:25,980 --> 00:05:28,050 Sean Aylmer: is and the pros and cons of it. 91 00:05:28,470 --> 00:05:31,560 Sarah Abood: Yeah, not fan's probably a bit of an understatement there, Sean. 92 00:05:32,279 --> 00:05:33,118 Sean Aylmer: I was being nice, Sarah. 93 00:05:33,119 --> 00:05:37,650 Sarah Abood: I think it's a pretty poor term and I think we can be 94 00:05:37,650 --> 00:05:41,009 Sarah Abood: assured that the term will change because it is confusing, 95 00:05:41,010 --> 00:05:44,789 Sarah Abood: I think, to consumers. But the core of this idea 96 00:05:44,789 --> 00:05:47,820 Sarah Abood: is that there are people who would perhaps be on the 97 00:05:47,820 --> 00:05:51,719 Sarah Abood: path to being a fully qualified advisor, but without having 98 00:05:51,719 --> 00:05:55,678 Sarah Abood: all of the qualifications, which of course now involves a three 99 00:05:55,678 --> 00:05:59,100 Sarah Abood: year tertiary degree plus a full professional year, that there 100 00:05:59,100 --> 00:06:02,969 Sarah Abood: may be circumstances where these people can provide assistance to 101 00:06:02,970 --> 00:06:06,750 Sarah Abood: consumers in certain limited ways on a limited set of 102 00:06:06,750 --> 00:06:10,920 Sarah Abood: topics that will still help people. So we are supportive 103 00:06:10,920 --> 00:06:13,559 Sarah Abood: of the idea in principle. We need to see guardrails 104 00:06:13,559 --> 00:06:17,489 Sarah Abood: to make sure that these people are not putting clients 105 00:06:17,490 --> 00:06:21,238 Sarah Abood: on the wrong path. But we think that overall that can be 106 00:06:21,240 --> 00:06:24,299 Sarah Abood: a positive development, that people will have more sources of 107 00:06:24,300 --> 00:06:28,740 Sarah Abood: advice. That advice really critically must be in the best 108 00:06:28,740 --> 00:06:31,529 Sarah Abood: interest of the client, and that was a change the 109 00:06:31,529 --> 00:06:34,948 Sarah Abood: government made late last year. So I think that will 110 00:06:34,949 --> 00:06:38,730 Sarah Abood: help improve the confidence of consumers in those who are 111 00:06:38,730 --> 00:06:42,479 Sarah Abood: providing this advice. Nevertheless, it will be simple advice, it 112 00:06:42,480 --> 00:06:46,319 Sarah Abood: will be limited advice. It won't be the full service that's 113 00:06:46,320 --> 00:06:51,089 Sarah Abood: provided by a fully qualified and professional advisor. And I 114 00:06:51,089 --> 00:06:53,999 Sarah Abood: think you're touching there on a broader point, which is 115 00:06:54,330 --> 00:06:57,178 Sarah Abood: of course we know that the best outcome is absolutely 116 00:06:57,180 --> 00:07:00,988 Sarah Abood: for someone to go and see a professional advisor, get 117 00:07:00,990 --> 00:07:04,979 Sarah Abood: a proper plan done up, and have an ongoing relationship 118 00:07:04,980 --> 00:07:07,080 Sarah Abood: with someone who will hold you to account and make 119 00:07:07,080 --> 00:07:10,020 Sarah Abood: sure that you're continuing to do the things that you 120 00:07:10,020 --> 00:07:12,720 Sarah Abood: need to do to set yourself up for a great 121 00:07:12,720 --> 00:07:17,340 Sarah Abood: future. But there are also advisors who provide other forms 122 00:07:17,340 --> 00:07:20,819 Sarah Abood: of advice that are out there. So a number of our members 123 00:07:21,510 --> 00:07:24,960 Sarah Abood: have podcasts, for example, like the one we're talking about 124 00:07:24,960 --> 00:07:28,739 Sarah Abood: now. They have online channels and so on, and they 125 00:07:28,740 --> 00:07:35,010 Sarah Abood: offer financial education to clients in smaller bite-sized chunks and at a more affordable price. 126 00:07:35,010 --> 00:07:36,990 Sarah Abood: And I think it's important that people are aware those 127 00:07:36,990 --> 00:07:40,830 Sarah Abood: services are out there. And that can help them improve their 128 00:07:40,830 --> 00:07:44,190 Sarah Abood: knowledge, make some changes to habits, and get themselves onto 129 00:07:44,190 --> 00:07:46,770 Sarah Abood: that path where they are in a position to go 130 00:07:46,770 --> 00:07:50,309 Sarah Abood: seek full financial advice later on. I'm sure one of 131 00:07:50,309 --> 00:07:53,460 Sarah Abood: the things that I always say, though, when I'm talking about that 132 00:07:53,460 --> 00:07:56,880 Sarah Abood: kind of service, is that it's really important for consumers 133 00:07:56,880 --> 00:07:58,829 Sarah Abood: to make sure that it's coming from someone who knows 134 00:07:58,830 --> 00:08:01,949 Sarah Abood: what they're talking about. And we have this great resource 135 00:08:01,950 --> 00:08:05,699 Sarah Abood: on MoneySmart called the Financial Advisor Register. So if you 136 00:08:05,699 --> 00:08:09,120 Sarah Abood: are listening to someone on TikTok or something and wondering 137 00:08:09,120 --> 00:08:12,780 Sarah Abood: if you can really rely on this advice, if it's 138 00:08:12,780 --> 00:08:15,750 Sarah Abood: really legit, just put their name into the financial advisor 139 00:08:15,750 --> 00:08:19,379 Sarah Abood: register on MoneySmart, and you'll know if you're dealing with a 140 00:08:19,380 --> 00:08:21,300 Sarah Abood: properly qualified advisor or not. 141 00:08:21,990 --> 00:08:23,759 Sean Aylmer: Stay with me, Sarah. We'll be back in a minute. 142 00:08:30,179 --> 00:08:36,509 Sean Aylmer: I am speaking to Sarah Abood, CEO of the Financial Advice Association Australia. There's 143 00:08:36,509 --> 00:08:39,929 Sean Aylmer: still the issue, though, of 5 million people needing advice, 144 00:08:39,929 --> 00:08:42,750 Sean Aylmer: and I mean, my view is that everyone needs financial 145 00:08:42,779 --> 00:08:47,939 Sean Aylmer: advice, but only 16, 000 fully qualified advisors out there. I'm 146 00:08:47,940 --> 00:08:51,630 Sean Aylmer: just trying to work out where in the spectrum the 147 00:08:51,630 --> 00:08:55,078 Sean Aylmer: idea of the qualified advisor, or robo- advice is another 148 00:08:55,080 --> 00:08:57,480 Sean Aylmer: option which never seems to have come to the fore quite 149 00:08:57,480 --> 00:08:59,819 Sean Aylmer: as much as we expected it to be. Are there 150 00:08:59,820 --> 00:09:02,880 Sean Aylmer: enough qualified advisors out there to actually look after us all? 151 00:09:03,600 --> 00:09:08,160 Sarah Abood: Look, we absolutely need more qualified advisors. We could put 152 00:09:08,160 --> 00:09:10,770 Sarah Abood: a zero on the end of the current numbers that we have and 153 00:09:10,770 --> 00:09:13,830 Sarah Abood: still not meet the demand that is out there. And 154 00:09:13,830 --> 00:09:15,929 Sarah Abood: certainly that's something I talk to people about too, because 155 00:09:15,929 --> 00:09:19,830 Sarah Abood: financial advice is a great career, and many people who come 156 00:09:19,830 --> 00:09:23,070 Sarah Abood: into the profession have done something else first. Those numbers 157 00:09:23,070 --> 00:09:27,300 Sarah Abood: are starting to tick up. So we had 317 new 158 00:09:27,300 --> 00:09:30,000 Sarah Abood: entrants last year, which wasn't a heap, but it's an 159 00:09:30,000 --> 00:09:34,500 Sarah Abood: improvement on the previous year, and we're starting to see the numbers improve. We've got to turbocharge 160 00:09:34,500 --> 00:09:37,679 Sarah Abood: that because I think we've got to make sure that people 161 00:09:37,679 --> 00:09:40,740 Sarah Abood: have got access to the real deal and full proper 162 00:09:40,740 --> 00:09:44,639 Sarah Abood: advice. And by getting more advisors into the profession, I 163 00:09:44,639 --> 00:09:47,490 Sarah Abood: think that's going to help raise awareness among the general 164 00:09:47,490 --> 00:09:51,629 Sarah Abood: population of what this service is, why it is fantastic, 165 00:09:51,750 --> 00:09:54,629 Sarah Abood: why it is worth paying for, and how much better 166 00:09:54,629 --> 00:09:58,380 Sarah Abood: off consumers are when they've sought financial advice. That's a 167 00:09:58,380 --> 00:10:01,530 Sarah Abood: huge focus for us, Sean, at the moment, and will 168 00:10:01,530 --> 00:10:04,650 Sarah Abood: be consistently in the years to come, is getting the 169 00:10:04,650 --> 00:10:07,499 Sarah Abood: numbers up of financial advisors because we don't have enough 170 00:10:07,500 --> 00:10:08,459 Sarah Abood: to service demand. 171 00:10:09,210 --> 00:10:14,460 Sean Aylmer: How much damage are the influencers doing, giving unregulated and often 172 00:10:14,460 --> 00:10:18,390 Sean Aylmer: uneducated advice on social media? Is it a bigger problem 173 00:10:18,390 --> 00:10:20,910 Sean Aylmer: now than it was because of influencers? 174 00:10:21,630 --> 00:10:26,939 Sarah Abood: Yeah, look, I think that is the case, and I'm not suggesting that every influencer 175 00:10:26,940 --> 00:10:32,130 Sarah Abood: is bad, but there are a number that have a negative impact on clients 176 00:10:32,130 --> 00:10:36,000 Sarah Abood: because they're selling products that might not be suitable for the 177 00:10:36,000 --> 00:10:40,320 Sarah Abood: people who are looking at them. They're selling trading strategies, cryptocurrency, 178 00:10:42,120 --> 00:10:46,770 Sarah Abood: all sorts of things that can absolutely have a pretty diabolical effect on 179 00:10:46,770 --> 00:10:53,340 Sarah Abood: someone's financial situation. In some cases, they're scams. And because it's all online, it can be 180 00:10:53,340 --> 00:10:57,690 Sarah Abood: very hard for a consumer to tell whether the person they're dealing 181 00:10:57,690 --> 00:11:00,540 Sarah Abood: with is actually legit and doing the right thing and 182 00:11:00,540 --> 00:11:03,689 Sarah Abood: giving good advice, or are they just taking payments behind 183 00:11:03,690 --> 00:11:09,059 Sarah Abood: the scenes from a crypto provider or one of those 184 00:11:09,299 --> 00:11:13,919 Sarah Abood: contracts for different trading outfits and so on. So that's 185 00:11:13,919 --> 00:11:16,710 Sarah Abood: why it's just so important, even if you've come across an advisor 186 00:11:16,710 --> 00:11:21,570 Sarah Abood: online, look them up. Because the problem for consumers is if you're not dealing with someone 187 00:11:21,570 --> 00:11:24,660 Sarah Abood: who's properly licensed and knows what they're talking about, you 188 00:11:24,720 --> 00:11:28,470 Sarah Abood: also have no recourse if something goes wrong. So if the 189 00:11:28,470 --> 00:11:33,689 Sarah Abood: thing's a scam or your balance goes to zero, you're 190 00:11:33,690 --> 00:11:36,509 Sarah Abood: on your own. Whereas if you're dealing with a licensed 191 00:11:36,509 --> 00:11:41,759 Sarah Abood: advisor, there's recourse, there's a complaints resolution scheme. Shortly there 192 00:11:41,760 --> 00:11:44,790 Sarah Abood: will be a compensation scheme of last resort. So consumers can 193 00:11:44,790 --> 00:11:48,240 Sarah Abood: have so much confidence in dealing with a licensed advisor. 194 00:11:48,660 --> 00:11:52,530 Sarah Abood: I'm always a bit cautious about the general influencer term 195 00:11:52,530 --> 00:11:58,439 Sarah Abood: because there licensed advisors who do engage with their clients online, and there's nothing wrong with that. That 196 00:11:58,440 --> 00:12:00,989 Sarah Abood: can be really great, particularly for engaging with the next 197 00:12:00,989 --> 00:12:06,390 Sarah Abood: generation. But it's just that point that consumers have got to be dealing with 198 00:12:06,390 --> 00:12:07,349 Sarah Abood: someone who knows what they're talking about, who's advising in their best interest. 199 00:12:10,830 --> 00:12:12,960 Sean Aylmer: Sarah, we are out of time, but just very broadly, 200 00:12:12,960 --> 00:12:16,049 Sean Aylmer: the quality of advice review which we touched on around 201 00:12:16,049 --> 00:12:18,569 Sean Aylmer: the qualified advisor. There's a bunch of stuff in that, 202 00:12:18,570 --> 00:12:20,610 Sean Aylmer: though, which is still to be legislated. So the government 203 00:12:20,610 --> 00:12:22,559 Sean Aylmer: outlined it late last year, though, I don't think we've 204 00:12:22,559 --> 00:12:24,900 Sean Aylmer: seen the details, correct me if I'm wrong there, of 205 00:12:24,900 --> 00:12:27,059 Sean Aylmer: what some of it means, but some of the gist 206 00:12:27,059 --> 00:12:29,370 Sean Aylmer: of what they're trying to do, some of that's good 207 00:12:29,370 --> 00:12:29,910 Sean Aylmer: though, isn't it? 208 00:12:30,509 --> 00:12:33,900 Sarah Abood: Yes, so I mean for advisors themselves, a lot of 209 00:12:33,900 --> 00:12:36,328 Sarah Abood: the reforms do have the potential to get the cost 210 00:12:36,330 --> 00:12:39,569 Sarah Abood: to provide advice down, and that's another massive focus for 211 00:12:39,570 --> 00:12:42,328 Sarah Abood: us, because a great way to make advice more affordable 212 00:12:42,570 --> 00:12:45,930 Sarah Abood: for consumers is to make it more affordable to provide. 213 00:12:46,349 --> 00:12:48,718 Sarah Abood: And by getting rid of a lot of those unnecessary 214 00:12:48,900 --> 00:12:53,520 Sarah Abood: processes, unnecessarily long documents and so on, that's a great 215 00:12:53,520 --> 00:12:56,790 Sarah Abood: start. So we are really, really excited about those changes. 216 00:12:57,179 --> 00:13:00,449 Sarah Abood: They're being consulted on right now. And one of those 217 00:13:00,450 --> 00:13:05,429 Sarah Abood: changes is regulations that have the potential to dramatically cut 218 00:13:05,429 --> 00:13:08,639 Sarah Abood: the cost and the length to produce a statement of 219 00:13:08,639 --> 00:13:12,509 Sarah Abood: advice, and that's something that will benefit everybody. No consumer 220 00:13:12,510 --> 00:13:17,218 Sarah Abood: wants the current statement of advice, and the thing's famously 80 pages 221 00:13:17,220 --> 00:13:20,460 Sarah Abood: plus and full of disclaimer text, is kind of the 222 00:13:20,940 --> 00:13:25,200 Sarah Abood: software terms and conditions equivalent of financial advice. So what 223 00:13:25,200 --> 00:13:27,899 Sarah Abood: these regulations will do is turn it into a document 224 00:13:27,900 --> 00:13:32,700 Sarah Abood: that's actually engaging for consumers, much shorter, much more straightforward 225 00:13:32,700 --> 00:13:36,000 Sarah Abood: to produce, and I think that's a fantastic change. There 226 00:13:36,000 --> 00:13:40,799 Sarah Abood: are also other paperwork changes like rationalizing advice consent and so on 227 00:13:41,370 --> 00:13:43,620 Sarah Abood: that really do have the potential to take a lot 228 00:13:43,620 --> 00:13:46,708 Sarah Abood: of cost out of advisors' back offices. We're really excited 229 00:13:46,708 --> 00:13:50,309 Sarah Abood: about those and keen to see that legislation soon. We 230 00:13:50,309 --> 00:13:52,858 Sarah Abood: certainly hope to see it maybe around the middle of 231 00:13:52,860 --> 00:13:55,440 Sarah Abood: the year. I don't think anyone would want to hang 232 00:13:55,440 --> 00:13:57,689 Sarah Abood: their hat on that because you never know what's going 233 00:13:57,690 --> 00:14:01,020 Sarah Abood: to happen in the political processes. But we're certainly keen to 234 00:14:01,020 --> 00:14:04,139 Sarah Abood: see those regulations get through in the current term of 235 00:14:04,139 --> 00:14:06,718 Sarah Abood: government so that we can get on with getting the cost 236 00:14:06,719 --> 00:14:07,830 Sarah Abood: to provide advice down. 237 00:14:08,490 --> 00:14:10,319 Sean Aylmer: Sarah, thank you for talking to FEAR & GREED. 238 00:14:10,949 --> 00:14:12,030 Sarah Abood: No worries. Thanks, Sean. 239 00:14:12,480 --> 00:14:15,719 Sean Aylmer: That was Sarah Abood, chief executive of the Financial Advice 240 00:14:15,719 --> 00:14:19,589 Sean Aylmer: Association Australia. This is the FEAR & GREED Business Interview. Join 241 00:14:19,590 --> 00:14:21,990 Sean Aylmer: us every morning for the full episode of FEAR & GREED, 242 00:14:21,990 --> 00:14:25,650 Sean Aylmer: Australia's best business podcast. I'm Sean Aylmer. Enjoy your day.