The financial services industry needs to better communicate the value of financial advice to all Australians, Investment and Financial Services Association (IFSA) chief executive John Brogden told an audience at the fourth annual IFSA/Deloitte Future Leaders awards ceremony.
Speaking at the event held last week in Sydney, Brogden said that up until now the industry had not done enough to emphasise the benefit of good financial advice.
"The debate about cost and value has superseded the demonstration of the vital role that financial advice can play," Brogden said.
He foreshadowed new research by KPMG Econtech which revealed that those who receive financial advice were $2400 better off per year than those who didn't.
Brogden re-emphasised IFSA's position that all financial planning fees should be tax deductible so that all Australians have equitable access to financial advice.
"Any reform to advice must ensure access to low income earners and young people," Brogden said.
At the event Brogden also outlined IFSA's position on Australia's superannuation system.
He said the superannuation guarantee should be increased from 9 to 12 per cent over 10 years starting from 2010.
"In Ken Henry's interim report he stated that 9 per cent was adequate. Well I say that adequate is not enough and 9 per cent will not provide the retirement that many expect," he said.
Brogden acknowledged that some employers may be concerned with the changes but said the government could return increased tax revenue to taxpayers, partially as tax cuts and partially as increased superannuation payments.
"So we agree that tax concessions need to be increased for low income earners but not at the expense of high income earners," he said.
Meanwhile, ASIC's Julia Feher was named the winner of the fourth annual IFSA/Deloitte Future Leaders award.
Feher's winning entry explored initiatives to support the provision of quality financial advice.
"The paper also acknowledges that the industry has made a positive start to improving the overall quality of advice. We hope that by working with government and regulators over time, some of Julia Feher's proposals may be implemented," Brodgen said.
