At an industry event held in Sydney today, Assistant Treasurer Arthur Sinodinos announced the government will engage with industry stakeholders to review “a whole slew” of advice-relevant policy issues not covered by the FOFA legislation.
In an exclusive interview with ifa following the event, Senator Sinodinos elaborated on the nature of the announcement, describing the move as a “work program”.
“We’re still thinking about the way the review might be conducted and we don’t want to go out there and announce a full-blown very formal [process],” Mr Sinodinos said.
“What I was really setting out is a work program in consultation with stakeholders around issues including cost and availability of [professional indemnity] insurance, the issues around education standards and how you formalise those.”
The Assistant Treasurer said the government has not endorsed ASIC’s call for a national examination for financial advisers but said it was aware of the matter.
James, The problem is high PI is one of the major deterrents to more independent and innovative planning groups.
They therefore are “encouraged” to stay in high cost product distribution driven environments of large financial institutions.
If a good result can be achieved then more innovation will occur which will lead to better quality outcomes at lower costs than are present today.
Maintaining incumbency provides an environment whereby the consumer is left with little choices and higher fees.
There will be a direct cost but the indirect benefits could be substantial over time.
I wonder how much tax payers money this ‘informal review’ will eat and what if anything it will achieve.
I wonder if the ASIC announcement of conducting a “national examination of financial advisers” ISN advisers, or is it, yet again, retail and independent advisers? (*sigh*)