The Australian federal government has announced plans to address the shortage of financial advisers.

The government says it wants to reduce the reliance on unregulated online sources and influencers, commonly known as “finfluencers”. 

The government says that since the Hayne royal commission in 2019, approximately 10,000 financial advisers have exited the industry, resulting in a lack of reliable information for individuals.

Currently, only 16,000 financial advisers remain, and the cost of financial advice has surged by 41 per cent between 2018 and 2021, making it unaffordable for many households. 

To tackle this issue, the government intends to significantly increase the number of financial advisers and facilitate superannuation funds in providing advice to their members approaching retirement.

Additionally, the government plans to incentivise experienced financial advisers with clean records to remain in the industry, even without a tertiary qualification. 

These measures are part of the government's response to the Quality of Advice Review, with 14 out of 22 recommendations accepted either fully or in principle.

The government will introduce legislation to parliament this week to support experienced financial advisers.

The plan consists of three phases: streamlining the advice-giving process, addressing retirement incomes, and exploring the involvement of other institutions like banks and insurers in providing financial advice.

Assistant Treasurer and Minister for Financial Services, Stephen Jones, says the lack of affordable quality advice has led individuals to seek information from unregulated sources, posing a risk of significant consumer harm.

The government's plan involves removing regulatory red tape, expanding access to retirement income advice, and exploring new channels for advice. 

It will conduct consultations with industry and consumer stakeholders to finalise implementation details and ensure effective consumer protections.