A change of government at the upcoming federal election would be a lot different for financial advisers than the last time the Coalition held office, according to shadow financial services minister Luke Howarth.
Appearing on an upcoming episode of The ifa Show, Howarth acknowledged that there had been Coalition governments that negatively “impacted this industry”.
“For that, I’m sorry, because over the last decade, the advice industry has been overburdened by layers and layers of new regulation, whether it’s FOFA or FASEA and the Hayne royal commission, they’ve all put industry under a lot of pressure,” he said.
“Every minister is different, and one thing I can assure you now is that there has been renewal in the Coalition, and we are under new leadership under Peter Dutton.”
Giving something of a pre-election pitch to the advice community, Howarth said it was important to have a minister that will “tread carefully” when it comes to regulation.
“I know that under a Dutton coalition government … advisers will have a government that respects them and respects their professional judgement and hopefully get out of the way and let them get on with their job,” he said.
“And in the shadow treasurer as well, Angus Taylor, I’ve spoken to him in depth about this. He’s a friend of the industry as well as people like Bert van Manen that also came from the industry.
“I think there’s been things done in the past that might have been done differently if I was there, but at the end of the day, I wasn’t there and I’m new in this role and I’m sort of out listening to people and want to provide good leadership if we’re given the opportunity to govern.”
The shadow minister stressed that he’s not looking to emulate the Albanese government, which he said made “a lot of promises that they haven’t lived up to”, aiming instead to take a position of “let’s not legislate for the hell of it”.
“I don’t want to put in a whole lot of new legislation that’s just going to cost Australians more money,” Howarth said.
“I come from the point of view, ‘Well, how do we make people more money? How do we give people better advice? How do we reduce costs on sole trader, small business, family business, you know, how do we not push more costs on the people I represent?’
“So, the comments I’ve made around implementing the Levy review, looking at the Compensation Scheme of Last Resort to make sure that we reduce the annual fee there, those are sort of things that would be a priority for me.”
This extends, he said, to ensuring that the most impactful reforms are enacted quickly, such as reforming statements of advice and the best interests duty.
“We don’t want to go back to the drawing board, unless there was specific advice that was going to impact in some way. But from what I’ve seen, it’s about trying to simplify the regulation,” Howarth said.
He added: “We would want to implement quickly what was in that Levy review. And after speaking to many advisers, it is purely about reducing red tape and reducing costs. That’s important and I think we would do that quickly.”
To hear more from Luke Howarth, tune in to our podcast from Thursday afternoon.
Must be an election looming… Heard all these (yet-to-be) broken promises all before.
Frydenberg was a condescending egotist.
My understanding is that at some time previously possibly a close relative had an experience with a Financial Adviser that Josh didn’t approve of at all.
That experience allowed Josh to delete any form of consideration or empathy for Advisers entirely.
He was already tainted.
Even Kenneth Hayne refused to shake his hand when Joshy wanted to show Ken how much he thought of him.
I don’t trust the Liberals or Labor to reform the Financial Advice industry. However, I would prefer Labor. Yes, Jones has not been a good representative either. After the election, I might see a new minister who might do better.
“Hume, O’Dwyer, and Frydenberg. Thankfully, two of those have gone concur with this person”.
Why now, Luke? Easy votes?
Wow. This is a very thinly veiled, and totally deserved swipe by Howarth at Hume, O’Dwyer, and Frydenberg. Thankfully two of those have gone. What a pity Hume isn’t in the lower house or she would be a prime target for replacement by a Teal.
Neither party is interested in making our lives easier, only making sure that the institutions that provide them with large donations (unions for labor, banks and insurers for the LNP) are taken care of. There is very little in Levy’s recommendations for us and plenty for the insto’s. They’ll promise the world before an election and then actively try to ruin our businesses after.
So true
And very sad
Labor has to go. Coalition in. Unlike the errors of Hume and Frydenberg Howarth and Co have actual practical small business experience and ex FP in cabinet together with Bragg who at least understands the problem. Unlike ignorant lazy bias corrupt legislation littered with errors
The political party who cried “WOLF” !!!!!
To give the Liberal’s another chance would be like forgiving a partner who cheated on you several times behind your back, lied to you about it to your face and then told you they love and respect you.
The level of damage the Liberal Party dealt out to Financial Advisers was incomprehensible.
Scott Morrison, Malcolm Turnbull, Josh Frydenberg,Kelly O’Dwyer and Jane Hume did not care an inch about the damage they delivered to small businesses and Licensees.
They didn’t listen, because they didn’t care.
To give them another chance would be fraught with apprehension and anxiety because the level of trust has been totally destroyed.
If they are given a chance, it will be their last ever to get this right and listen and do what Advisers require.
One chance only….one.
Pray tell, how do you simplify SoAs? It is complicated and the legal profession is going to ensure licensees are too risk adverse to want wholesale change. The law needs to change and if there is a mixed-bag Senate cross-bench in the new parliament, it is difficult to get any changes through. Remember, you have Consumer Affairs crying chicken little and they certainly put Jones off being bold
At least the LNP are publicly admitting their past wrongs.
That is enough for me to go back and vote for them.
Last election I was so done with Frydenberg I was very vocally voting against the LNP and telling clients so and why.
Not that I voted ALP but Jones has been another disaster. Quick wins 3 years later have delivered nothing but ASIC fees x3 and CSLR they refused to pay and dumped on Advisers.
ALP must go.
Let’s hope LNP can’t do any worse this time