MLC Life Insurance welcomes the decision from the Federal government to provide much needed relief for financial advisers by reducing the cost recovery levies charged by ASIC.

Due to a range of recent legislative change, advice is becoming too expensive, less available, and out of reach for many, in particular new customers and low to middle income Australians. In addition, the number of licensed financial advisers have decreased from 28,000 in 2018 to 21,000 in 2020 (Adviser Ratings, April 2021).

On the current trajectory, within three years, only the wealthiest 15 per cent of Australians will be able to access life insurance with personal advice (Choice and Access to Life Insurance research, 2020). The small business-centred, advice sector is under great strain and the supply of advice is dropping, just when the need for Australians to access financial advice has never been greater due to the economic impacts of the pandemic.

We believe Australians benefit from access to good quality financial advice, and reducing the cost of advice is vital to ensuring access. Greater access to affordable and professional financial advice should be the objective of government policy in this area, including the upcoming Quality of Financial Advice Review being conducted by Treasury.