The Advisers Association (TAA) says an Australian Law Reform Commission (ALRC) inquiry should hold fire on some reforms until a Treasury Quality of Advice Review is completed to avoid two sets of changes being introduced within a relatively short period.

TAA CEO Neil Macdonald also says there’s a need to “tread carefully” and consult broadly before any changes are introduced.

“Let’s look very closely at the potential impact of any changes on consumers, advisers and other stakeholders before we leap,” he said.

The ALRC has released a first interim report as part of a three-year review to reduce the complexity of financial services legislation and regulation. The report includes proposals and questions around advice terminology.

“Our submission calls for detailed impact statements on a wide variety of stakeholders, because in our experience financial adviser clients have very different needs to people who have only ever experienced product solutions, or have never received advice,” Mr Macdonald says.

TAA represents more than 550 small businesses and over 850 advisers authorised by the Hillross and AMP Financial Planning licensees.

The group supports many ALRC recommendations, including a plan to simplify the definitions of financial advice and financial product advice.

“We believe the time for separating financial advice from product is long overdue,” Mr Macdonald said. “There has been far too much focus in the law on financial product, to the detriment of financial advice, for far too long.”