MetLife's response to the FSC’s proposed revisions to financial advice rules
Sydney October 21, 2020
Meray El-Khoury, Chief Retail Insurance Officer:
MetLife supports the call by the FSC to reevaluate how financial advice is regulated, in order to improve consumer access to advice.
MetLife has long been an advocate for greater accessibility and affordability of financial advice for consumers to aid choice, particularly given the financial strain COVID-19 has caused for many Australians. In fact, our COVID-19 consumer research undertaken in April 2020, found that almost 60% of people felt the pandemic had directly impacted their financial position. Importantly, our research showed the positive impact of financial advice with 46% of people with a financial adviser saying they feel financially secure and comfortable with their financial future, compared to 37% overall.
Despite this, the number of people accessing financial advice is on decline. According to MetLife’s 2019 ‘Understanding the adviser-client relationship’ report, as of last year, 3 in 10 consumers and 5 in 10 Small Medium Enterprises were considering either changing their current adviser, or ceasing to use one completely, with high fees and value cited as two of the most common reasons for this decision.
Revising the ways in which advice can be classified and accessed as per the FSC’s proposal helps present a solution to this problem. By allowing financial advisers to provide advice for simple needs, the majority of Australians with simple personal needs will be able to access quality advice at an affordable cost. Reducing the compliance requirements for this type of advice could give advisers new tools to help better service their clients’ needs and encourage greater take up of financial advice from the consumer population, leading to overall better financial wellbeing.
MetLife welcomes any opportunity to work with financial advisers and the Government to help improve access and affordability for consumers, and ensure the long-term viability of the financial advice industry aided through consumer choice.
Media Contact
Sarah Kelly
MetLife Australia
+61 (0)411 893 890
About MetLife Foundation
At MetLife Foundation, we are committed to expanding opportunities for low- and moderate-income people around the world. We partner with nonprofit organizations and social enterprises to create financial health solutions and build stronger communities, while engaging MetLife employee volunteers to help drive impact. MetLife Foundation was established in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. From its founding through the end of 2019, MetLife Foundation provided more than $860 million in grants and $85 million in program-related investments to make a positive impact in the communities where MetLife operates. Our financial health work has reached more than 13.4 million low- and moderate-income individuals in 42 countries. To learn more about MetLife Foundation, visit metlife.org.
About MetLife
MetLife Insurance Limited (MetLife), an affiliate of MetLife, Inc., is a specialist provider of life insurance to affinity partners, superannuation trustees and employers in Australia. MetLife has expertise in designing and executing direct insurance programs for partners’ customers and insurance solutions to meet the needs of specific member groups. MetLife has been a specialist provider of life risk insurance products in Australia since 2005. For more information, visit metlife.com.au.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates, is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit metlife.com.