Financial Advice Association Australia (FAAA) CEO Sarah Abood said Stephen Jones elucidated that a new title to replace the controversial “qualified adviser” would be determined after gathering suggestions from several parties, including the FAAA.
“Minister Jones made a comment that he didn’t want it to be Adviser McAdviserface,” Abood mused ahead of her session at the Adviser Innovation Summit 2024 this week.
“He was referring to the notorious survey to name a Sydney ferry Ferry McFerryface many years ago. I took that to mean that the new term wasn’t going to be decided by a vote or survey. I can confirm that it’s not going to be called conflicted salesperson, which was one of the perhaps tongue-in-cheek suggestions from the adviser community.”
The new term must clearly signal to the consumer that the advice they would receive from the new class of advisers would be different to the holistic personal advice they receive from a financial adviser, Abood stressed.
The FAAA has suggested “restricted adviser” or “limited adviser” as alternatives to qualified adviser, she added.
“This could prompt a conversation with a client about how this adviser is limited or restricted in the advice they provide,” Abood said.
She noted that there is precedent for the term restricted adviser in the UK, who can only recommend products from certain providers or a single company.
“Another school of thought is if the adviser is employed by a financial institution, they could have the institution’s name in the title, followed by adviser,” Abood said.
“This could clearly indicate to the consumer that the adviser can only talk about the products of their parent company.”
On the other hand, some advisers have opposed including the term adviser in the title altogether, and instead suggested using agent, associate, or something similar.
“I think it’s heartening that the minister has said clearly that he is open to and intends to change the name. We hope to see an outcome when the draft legislation for the second tranche is released.”
The government has indicated that the second tranche of the Delivering Better Financial Outcomes package is expected to be released mid-year, although a date has not been specified.
Abood said FAAA is also focused on the scope of the new class of adviser, and while the Quality of Advice Review (QAR) suggested that they would provide simple advice, the definition of simple advice is broad.
“We’ve been looking at various ways that the scope of these new classes of adviser could be defined, because we think it’s important that there is a clear line between what they can do and what a fully qualified professional adviser does,” Abood said.
She also flagged that with the federal election looming in 2025 and the caretaker period that comes into effect once it is announced, she would prefer that the legislation passes under the current government as quickly as possible.
“There’s so much work being done with the current team,” Abood said.
“We’d be concerned that we might lose momentum if that package doesn’t get through the current Parliament. We would like to see the package passed so we can get on with fixing the many issues that the Quality of Advice Review identified. Our hope is that the draft legislation has the elements in it that were suggested in terms of protections and that we can get it through in a short timeframe.”
At the Adviser Innovation Summit, Sarah Abood and FAAA general manager Philip Anderson will discuss the QAR proposals and what it could mean for the future of financial advice if implemented.
It will be held on Tuesday, 4 June at Telstra Customer Insights Centre Sydney, and Thursday, 6 June at Zinc at Fed Square, Melbourne.
Click here to buy tickets and don’t miss out!
For more information, including agenda and speakers, click here.
Jones must be laughing.
While everyone is worried about the naming of this new class of saleperson, he isn’t having to do anything to actually fix the problem – ie reducing the red tape that real advisers have been tied up in.
My money is on the fact that he will not have reduced red tape at all before the next election.
If only there was a compensation scheme so we could get money back for their promises.
This is actually quite a serious matter.
Whoever devised the name/term qualified adviser should probably be in gaol.
It was a deliberate attempt to deceive millions of superannuants.
What on earth is the FAAA thinking ?
The term “adviser” (which was meant to be enshrined – remember?) , should not be used in ANY context !!
Product Sales Assistant
I wouldn’t believe any “signals” coming out of Jones’s mouth
Headline of the year goes to Minister McPoliface
You can’t possibly put the word “adviser” in there in any form.
Product Agent
What is Aboud thinking???
Adviser after the company name. That just potentially means a fully qualified adviser working for XYZ industry fund and paid for by grouped commission/fees.
I think I’ll become a doctor (of finance in the small print).
Thinking about more members, selfishly at the cost of existing members and Australians ability to get unbiased advice
Prediction: A soon as these unqualified sales agents are unleashed on the public, the FAAA will create a new category for them, and sign them all up as members. Abood and others will get their bonuses. Many of FAAA’s current members will leave in disgust, but that number will be dwarfed by the influx of industry fund call centre sales jockey’s who use the FAAA’s brand to give themselves credibility.
and their membership will be paid by the industry funds…
“We’ve been looking at various ways that the scope of these new classes of adviser could be defined, because we think it’s important that there is a clear line between what they can do and what a fully qualified professional adviser does,” Abood said.
Well that is pretty easy!
The one to be known as a qualified adviser or similar will be defined as having a care free life not burdened by government red tape regulations with mountains of unnecessary paperwork like a SoA, opt in, CSLR fees etc. etc. and the other known as a fully qualified professional adviser wont!
The differences will be like night and day and I know which side will be far more appealing to new entrants…
The more numbers the less CSLR we will have to pay !!!
however, the more dodgy advice they will be giving
and the more qualified advisers will need to pay to cover up their mistakes.
‘Backpacking call centre desk jockey’ – now let’s move on
Product Sales Agent
That are :
Uneducated
Unqualified
Vertically owned
Conflicted
Single product sales
All paid for via HIDDEN COMMISSIONS.
At the same time Jonesy has done NOTHING to fix the Hot Mess of mass over regulation and red tape to Real Advisers.
Yet more useless Govt disgraceful inaction to Real Advice.
How about increasing Advisers Fee instead with a 7.5% GST increase.
That will make Advice more affordable and accessible.
The thing the Government might be considering are 1) Members needs verse 2) the Needs of the Product Provider?
Anyone remember how much money is in Super?
The contempt the government has for Advisers and FAAA shows this is not going to end well.
Are we serious. Why waste time on the Title. This should take 5 minutes to figure out an appropriate Title. Making public announcement about a title (how many people were involved in this, running from institution to institution to get a quote or statement) we must have better things to do than this. Maybe we need to help them with their shopping list next. What waste of time. Typical Government, can’t handle the small stuff, how is it managing the important stuff.
Jones wants total control of the new adviser naming convention to ensure that it appeases his superiors, the industry super funds.
Why even suggest using “adviser” as part of title Sarah….displays a complete detachment from the industry preference!!
Agree.
No use of the word “adviser”.
Still don’t understand why there is so much focus on this qualified adviser. The easy win to free up advisers is reduced compliance burden.
…but, that will make life less difficult for us. We need to be punished, remember?
Too bloody nice again !!!!!!!!!