Addressing the Self Managed Superannuation Fund Association National Conference 2020 in the Gold Coast on Wednesday, Ms Hume said the aim of the disciplinary system was to strengthen the advice system and improve access to quality advice.
“In line with the royal commission’s recommendation, the government will introduce a new disciplinary system for advisers which will bring them into line with other professions such as lawyers, doctors and accountants,” she said.
“Legislation for that system is scheduled to be introduced by the end of 2020, ultimately strengthening the advice sector by improving access to high quality and affordable advice that will help [consumers] to make better financial decisions.”
Ms Hume said implementing the recommendations of the royal commission was “the government’s number one priority” when it came to legislative issues to address in financial services this year, meaning other government policies such as increasing SMSF member numbers and relaxing rules around super contributions for retirees may have to wait.
However, she indicated recently introduced legislation to extend the timeline for advisers to meet the requirements of the FASEA regime was expected to be passed imminently.
“Last week I was very pleased to see the House of Representatives pass legislation to give existing advisers more time to meet the new exam and educational requirements,” Ms Hume said.
“It soon goes to the Senate, where I am very confident that it will be passed unopposed.”
She has absolutely no idea.
If the govt wanted a disciplinary system to bring licensed advisers into line with accountants they would be getting rid of regulations, not imposing more.
If the government was serious about protecting consumers from bad financial advice they would be enforcing existing financial advice laws against accountants, mortgage broker, real estate agents, super fund employees etc. who illegally provide lots of bad financial advice with apparent regulatory immunity.
The only element of truth in this pile of garbage from Hume was the bit about the govt’s number one priority being implementation of the RC recommendations. It is quite clear the govt thinks it can appease the trash media by doing so. They couldn’t care less that drowning licensed advisers in masses of complex and expensive regulation, while completely ignoring all the dodgy advice given by unlicensed providers, will ultimately make consumers much worse off.
I just love how the spin machine works
What a joke! So, “…the aim of the disciplinary system was to strengthen the advice system and improve access to quality advice” is it?
Just exactly how does an “improvement in access to quality advice” happen when half the industry’s advisers have left the industry as a result of the onslaught of reduced remuneration, massively increased costs, absurd compliance and regulation requirements, a constant threat of legal action now with the unfair platform that’s been created against advisers and the ridiculous education requirements FASEA have unethically created forcing extremely experienced advisers to undertake, which creates a situation where the remaining advisers will refuse to take on smaller value clients and only deal with high net worth clients that are profitable for them?
To be honest, I’m surprised to actually hear from Senator Hume as she continually turns a blind eye to any factual evidence you provide her about the carnage that is happening in this industry. I haven’t heard her name for weeks.
These ministers are so blind to the facts of what’s happening in the financial services industry, it’s staggering.
The very goal ‘they say’ they’re seeking to achieve will inevitably (and definitely) result in the exact opposite result. The writing is on the wall, they just refuse to read it – regardless of the extension going through Parliament at the moment for advisers to achieve these education requirements. The death bell tolls…
Well I guess if we are on par with Doctors and Lawyers, we can just do away with SOA’s and the full suite of compliance documentation. I’ll start writing “financial scripts” from now on….
The last time I saw my Accountant I had ZERO compliance and didnt even know what fee I would be paying – just a joke
“Legislation for that system is scheduled to be introduced by the end of 2020, ultimately strengthening the advice sector by improving access to high quality and affordable advice that will help [consumers] to make better financial decisions.” What planet is he from. All it will do is add another layer of oversight on advisers and increase the costs of providing advice. So come a years time you will have ASIC, FASEA and a disciplinary system overseeing advice.
” improving access to high quality and affordable advice” it may well be higher quality but affordablity is another issue.
As they say time will tell
it’s all about how 100% blame gets shifted to the adviser – Its a MUGs game
One of Jane Hume’s goals is to ‘improve access to quality advice’!! Really? By rolling out a disciplinary body to enforce a Code of Ethics which is deeply flawed? FASEA’s Code will make it harder for advisers to earn an income and will make compliance impossible. Advisers are walking away. Those remaining are jacking up fees through the roof and cutting smaller clients in response to this rotten code. So how exactly will enforcing this joke of a code ‘improve access to quality advice’? Please tell me….