Tom Garcia wrote this post on LinkedIn discussing the current model of providing financial advice in Australia and the flaws it faces.
Garcia says "There are two key issues that need addressing: the definitions of advice, and the Statement of Advice. There are now almost more legal definitions for financial advice – general, comprehensive, personal, limited, intra-fund etc – than there are asset classes in which to invest. Talk about confusing for the average customer, who is essentially just asking for help. But many financial planners are just as confused. If you ask 10 people in the industry, you will probably get 10 different answers as to what advice is permissible under each definition. Many advisors run for cover and err on the side of caution, leading to a poor customer experience."