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The Things That Won’t Change with QAR 2

Published: 20 May 2025,
Intelligent Planning Team

As the financial advice industry gears up for the next tranche of the Quality of Advice Review (QAR 2) reforms, there’s no shortage of discussion around what the changes will mean for advisers. However, amid all the speculation and preparation, it’s just as important to focus on what won’t change—key elements that remain fundamental to the profession, the advice process, and the client experience.

1. The Need for Professionalism and Ethics

While QAR 2 aims to simplify advice delivery, the expectation of professionalism, integrity, and ethical conduct remains steadfast. Advisers will still be required to act in the best interests of their clients, maintain ethical standards, and uphold their obligations under existing frameworks like the Code of Ethics and Best Interests Duty (where applicable).

2. Understanding Client Needs and Objectives Remains Vital

Despite changes in regulatory requirements, the importance of thoroughly understanding client needs and objectives remains paramount. Advisers will still need to gather SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) details from clients to ensure their financial goals are clearly defined. This information is essential for performing accurate modelling, benchmarking strategies, and tailoring financial solutions that align with the client’s unique circumstances.

3. The Value of Relationships

Regulatory change doesn’t alter the fact that financial advice is built on trust and strong client relationships. Clients will continue to value personalised service, proactive engagement, and advisers who take the time to understand their unique needs and goals.

4. Justifying Advice to Meet Goals and Objectives

A fundamental principle of financial advice is ensuring that recommendations align with clients' goals and objectives. Despite changes in compliance requirements, advisers will still need to document and justify their advice, demonstrating how it serves the client’s best interests.

5. Research and Due Diligence Will Be More Critical Than Ever

Thorough research remains critical in ensuring the quality and suitability of financial advice. With the existing Statement of Advice (SOA) being scaled back, the importance of comprehensive research and analysis will only increase. Advisers must continue to assess products, strategies, and market conditions with greater diligence to ensure their recommendations are robust, defensible, and tailored to clients' specific needs.

6. Quality File Notes Will Be More Important Than Ever

Good record-keeping practices will continue to be a key component of delivering professional financial advice. As the requirement for a detailed SOA diminishes, advisers must place even greater emphasis on maintaining clear, concise, and detailed file notes. These records will be essential to demonstrate the rationale behind recommendations, ensure compliance, and provide a strong foundation for client protection and continuity of service.

7. The Demand for Efficient, Scalable Advice

While compliance obligations may shift, the need for efficient business processes and scalable advice models remains unchanged. Technology, streamlined processes, and effective client management will still be critical factors in running a successful practice.

8. The Role of Licensees in Compliance, Business Growth, and Adviser Community

While QAR 2 may alter some compliance and oversight requirements, licensees will still serve as an essential support system for advisers. Beyond compliance, governance, and access to resources, licensees play a critical role in helping advisers grow their businesses. Providing support in business development, marketing strategies, and operational efficiencies will remain key in ensuring advisers can scale effectively while maintaining high-quality service. Additionally, fostering a strong community of advisers will continue to be important, creating opportunities for collaboration, knowledge sharing, and peer support to help navigate industry challenges together.

Final Thoughts

QAR 2 will bring change, but the fundamentals of financial advice—ethics, client relationships, and the need for professional guidance—will endure. As the industry navigates these reforms, advisers who focus on delivering value, adapting to new opportunities, and maintaining high standards will continue to thrive.

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