Implementation of anticipated ‘quick wins’ unlikely until end-2024

The government is expected to table legislation related to the Quality of Advice Review (QAR) in the autumn sitting of Parliament.

However, the scope of the QAR covered in what is anticipated to be tabled, anywhere from February onwards, remains unknown.

Last week, the government announced its first tranche of QAR-related legislation; however, noticeably absent were changes to statements of advice (SOAs) and the removal of the safe harbour steps from the best interests duty.

Speaking to ifa this week, Phil Anderson, the general manager of policy, advocacy and standards of the Financial Advice Association Australia (FAAA), said he believes it could be a layered legislative approach, whereby “some of the things will happen more quickly than others”.

“If the legislation is passed by the middle of next year, with a six-month implementation, it may be by the end of next year that FDSs are gone,” Mr Anderson said.

Addressing the level of scepticism that surrounds the government’s perceived slow response to the QAR, Mr Anderson referred to historical precedents.

“The Ripoll inquiry final report was handed down in November of 2009 and FOFA [Future of Financial Advice reforms] started on 1 July 2013, so if you asses it on that basis, it’s not yet taking a terribly long time, but we want to see the rubber hit the road as soon as possible,” he explained.

“Things do take a lot longer and people don’t necessarily appreciate that our minister is not just focused on financial advice.”

Ultimately, Mr Anderson anticipates that 2024 will be “a busy year from an advocacy standpoint”.

“I think people are wanting to see real change to make it easier to provide financial advice and if we can make some progress on some of the QAR recommendations, then I think we can start to tick some boxes,” Mr Anderson said.

Highlighting a heightened sense of morale in the industry, he observed that over recent years, there hasn’t been “significant additional negativity”.

“The CSLR was the last piece of royal commission-related legislation that has been passed this year, but other than that, you really go back to the Better Advice Bill in October of 2021, some of that was, I guess, more positive than negative. So, it’s a while that there’s been major change that’s had a significant detrimental impact and that period of pause is good.

“But we’ve got to not just rely upon a pause in terms of negative change but turn it around and start to achieve positive change.”

Touching also on the AFA’s merger with the FPA to form the FAAA, Mr Anderson said the group’s recent congress is proof that “people are merging and working together”.

“From my own perspective, the work that I have been doing related to the AFA is largely now complete. The merger, the liquidation of the AFA is close to being finalised so I’m very much focused on the policy, the advocacy, and standards that my job title is focused on.”