The government is expected to table legislation related to the Quality of Advice Review (QAR) in the autumn sitting of Parliament.
However, the scope of the QAR covered in what is anticipated to be tabled, anywhere from February onwards, remains unknown.
Last week, the government announced its first tranche of QAR-related legislation; however, noticeably absent were changes to statements of advice (SOAs) and the removal of the safe harbour steps from the best interests duty.
Speaking to ifa this week, Phil Anderson, the general manager of policy, advocacy and standards of the Financial Advice Association Australia (FAAA), said he believes it could be a layered legislative approach, whereby “some of the things will happen more quickly than others”.
“If the legislation is passed by the middle of next year, with a six-month implementation, it may be by the end of next year that FDSs are gone,” Mr Anderson said.
Addressing the level of scepticism that surrounds the government’s perceived slow response to the QAR, Mr Anderson referred to historical precedents.
“The Ripoll inquiry final report was handed down in November of 2009 and FOFA [Future of Financial Advice reforms] started on 1 July 2013, so if you asses it on that basis, it’s not yet taking a terribly long time, but we want to see the rubber hit the road as soon as possible,” he explained.
“Things do take a lot longer and people don’t necessarily appreciate that our minister is not just focused on financial advice.”
Ultimately, Mr Anderson anticipates that 2024 will be “a busy year from an advocacy standpoint”.
“I think people are wanting to see real change to make it easier to provide financial advice and if we can make some progress on some of the QAR recommendations, then I think we can start to tick some boxes,” Mr Anderson said.
Highlighting a heightened sense of morale in the industry, he observed that over recent years, there hasn’t been “significant additional negativity”.
“The CSLR was the last piece of royal commission-related legislation that has been passed this year, but other than that, you really go back to the Better Advice Bill in October of 2021, some of that was, I guess, more positive than negative. So, it’s a while that there’s been major change that’s had a significant detrimental impact and that period of pause is good.
“But we’ve got to not just rely upon a pause in terms of negative change but turn it around and start to achieve positive change.”
Touching also on the AFA’s merger with the FPA to form the FAAA, Mr Anderson said the group’s recent congress is proof that “people are merging and working together”.
“From my own perspective, the work that I have been doing related to the AFA is largely now complete. The merger, the liquidation of the AFA is close to being finalised so I’m very much focused on the policy, the advocacy, and standards that my job title is focused on.”
The changes without the SoA amendments? lol, f$ this , what a waste of everyones submissions and time, and the associations cup government in the meantime like they’ve done well. Disgusting
Not only is Jones deliberately slowing down implementation QAR, he is trying to use it as a diversion from all the other problems in financial advice.
What about the unworkable Code of Ethics, which was supposed to be reviewed?
What about the ridiculous amount of repetitive Ethics CPD imposed on advisers, which was supposed to be reviewed?
What about the unfair cost slugs from ASIC, with more in the pipeline?
What about the fact we still have 4-5 overlapping disciplinary bodies, when Hayne recommended 1? (This was one of the few sensible recommendation of Hayne’s, and one both Liberal and Labor have chosen to ignore)
What about the expensive and cumbersome licensing model for financial advisers?
What about the bias driven adviser persecution culture in ASIC and AFCA?
QAR, if it is ever implemented, will only solve 10-20% of the problems preventing consumers from accessing affordable, professional advice. If the best Jones can do is take 2-3 years to implement so called “quick wins” and only end up fixing 10-20% of the problems, he doesn’t deserve to be in the job.
If there is no material legislation passed before July 2024 asic levy is announced which for the first time will also include csolr. The weekly adviser exists won’t just be double digits like this week, it will be the death of Labor
And retail financial advice. “Free” conflicted industry fund sales will absolutely skyrocket
Would be simpler to keep FDS, they are 10 years old.
Scrap AFC that platforms make up themselves.
Just make the Institutions take our FDS’s.
Some already do for all Inv & Supers.
Some do for just Inv.
Some don’t at ALL.
Our FDS, that covers both Mr & Mrs, multiple accounts if necessary.
And tack on Life Ins now too.
How hard is that ?
Far too hard for Canberra buffoons
There is nothing quick or a win for advisers or consumers from the QAR… just slow long term gains for Industry Funds, Insurance Companies and other corporates that the Government has a bias supporting.
BTW in the UK they have a Department for Financial Services Growth… yes growth … nothing that has occurred (legislative wise) here in the past 5 years has helped grow Life insurance coverage nor superannuation deposits / engagement by consumers. By growth of super deposits, i mean increased non legislative contributions…
The QAR is designed to enable the large Corporate/Industry Funds to provide offshore advice hotline teams, just like how Qantas & Telstra operate. There is little in this for retail advisers. Until the Annual Fee Renewal Consent Forms are changed to a once only form for ongoing service support fees (as exist in every other major market like USA, UK, Canada, Switzerland, NZ etc), 2 million consumers orphaned on the platforms will struggle to access full personal retail advice service.
Canberra, in all its useless madness from ALL Pollies, Bureaucrats / Regulators, so quick to slap down 10 x Red Tape. But oh no try to reduce some of the rubbish, yeh let’s do the quick wins in what………..4 years maybe ?
Better still let’s have some more reviews, lets add some more Red Tape = Life Insurance Comms FDS / AFC.
We’ve moved on. This is just ridonkulous.
The first and most important change for the benefit of Retail Investors is to be able to access professional and experienced advice from specialists in their own profession eg. insurance, accountancy, estate planning, mortgage, equity investing etc. etc.
Surely the term “Financial Advisor” is misleading— we all know the phrase “ JACK OF ALL TRADES MASTER OF NONE” can lead to disaster. As a Retail Stockbroker we advise on our dedicated knowledge of investment through the Australian and Global Stock Exchanges taking into account/consideration our clients’ risk profile— that’s where it finishes, ANY OTHER ADVICE comes from other professional experienced providers.
Can a Financial Planner act as General Practitioner? Refer on to specialists to the best of his/her ability and get paid for that ability? Or will they have a go as a “JACK OF ALL TRADES”.
We all know what should be done —-
LET’S MAKE IT HAPPEN Mr. JONES
Authored by a Stockbroker/Equity Dealer specialist