The government intends to shortly begin the consultation process that will inform its response to the Quality of Advice Review (QAR), ifa has learnt.
Namely, the Association of Independently Owned Financial Professionals (AIOFP) has been approached by the advice and investment branch of the Treasury’s retirement, advice, and investment division with an update about the QAR.
As per an email seen by ifa, the branch has been assigned the responsibility of assisting the government in formulating its response. The initial step towards this support involves collaborating with Stephen Jones, the Assistant Treasurer and Financial Services Minister, and his team to coordinate the consultation process.
Speaking to ifa, the executive director of AIOFP, Peter Johnston, confirmed that the group would be meeting with members of the Treasury branch on 4 April in Canberra.
Commenting on the likely delay in the government’s QAR response, as suggested by Minister Jones last week, Mr Johnston emphasised the need for the Minister to take sufficient time to ensure that the direction of the QAR is “fit for purpose”.
“Our message to those commentators calling for an immediate response is to please desist, grandstanding and goading may just have the opposite effect,” Mr Johnston said.
Last week, Mr Jones confirmed that the government would not reveal its position on Michelle Levy’s recommendations until after the May budget.
However, since the Treasury has only recently initiated the formal consultation process, concerns are growing that advisers may have to wait an extended period before receiving any updates from the government.
Last week, the chief executive officer of the Financial Planning Association (FPA) emphasised to the importance of maintaining the momentum on QAR.
In a statement to ifa, Sarah Abood urged the minister to “push ahead as quickly as possible” with remaining consultations on certain recommendations and noted that the government could make significant progress in certain areas with “quick wins”.
The only excuse for this fiasco that I can think of is that the QAR was proposed by the Liberals and therefore the ALP won’t accept any of its recommendations. Consultation has been done and finalised, either kill the findings or move on.
This sounds like the same message we got in relation to LIF from the associations supposed to be standing up for us.
Sorry, I think it’s time the adviser associations stopped rolling over and giving in. It’s clear Jones has no intention whatsoever of reducing the regulatory oppression of innocent advisers. All his efforts are focused on excuses and delays, not fixes. He has been in the job for nearly a year now and has only made things worse not better.
I can sort of understand AIOFP trying to defend Jones, given they so strongly supported him and opposed Hume at the last election. But he hasn’t delivered. AIOFP needs to accept they were used and lied to.
Hopefully Peter Johnston will give these Treasury bureaucrats a reality check with regards to all the damage they have brought on the industry. I doubt they will listen though.
Government should always consider the impact before blindly going ahead with all recommendations. If that had been done before implementing the whole fee renewal process which was the Hayne thought bubble (as Hayne had no idea what this would involve), we would not have had the additional red tape post RC.
IMO the upcoming Federal Budget will be full of preservation of your super in the name of sustainability, retirement income – an objective to super if you like. We will then have to see where the QAR fits.
Waste of time. Only meaningful consultation will be with the Industry Fund overlords
Wasnt the QAR the consultation process? Are they now consulting on the consultation?
The consultation process should have been undertaken by a seasoned individual without obvious COI and looked at both sides of the equitation, that is, the consumer side and the adviser side. You cannot answer a complex simultaneous equation by doing on half the work.
I suspect that was pretending to consult – it seem now the process takes the decision making to unelected representatives of ????? I could be wrong.
Luckily, we have a strong independent press in Australia who will no doubt investigate and leave no stone unturned – -but I could be wrong on that.
You clearly don’t watch the TV show Utopia 🙂
QAR was subject to an additional consultation after the interim finding, which didn’t change materially afterwards in the final report, which was concluded in December 2022. Govt now commencing consultation with AIOFP a very small membered voice in the context of Financial Planning Associations. Couldn’t make it up.
this is code for making sure the Industry funds are ok with it
Someone once said that the issues of this industry could be solved in an afternoon. I can’t remember who that was………..