Members of the advice industry support the staggered implementation of the Quality of Advice Review (QAR), with a strong desire to see momentum building.
Speaking to ifa, following Minister Stephen Jones’ announcement regarding the government’s QAR response, Dr Katherine Hunt, a financial adviser and researcher at Griffith Business School, said that it makes sense to have a stepped approach for implementation.
“There’s nothing wrong with eating an elephant one bite at a time. So long as there is momentum, we will all be happy with that,” she said.
Namely, along with announcing a much sought-after timeline, the financial services minister also revealed that the review could be implemented in several stages.
In conversation with ifa, Eugene Ardino, chief executive of Lifespan Financial Planning, said he would like to see the QAR “dealt with as soon as possible”.
“If his three-staged approach results in having some simple things implemented much sooner, then I am fine with it so long as more complex issues do not get shelved,” Mr Ardino said.
Reflecting on the industry’s state of limbo since the government received the final QAR report five months ago, Dr Hunt observed that while the industry has outwardly remained calm, there is a significant amount of behind-the-scenes preparation underway.
“Licensees and super funds I am working with are busy preparing the groundwork so they are ready to implement as soon as it hits the law,” she said.
“It’s a bit like a duck — calm on the surface and paddling like the dickens underneath the water where we can’t see,” Dr Hunt added.
When asked about the significance of the QAR for the industry, Mr Ardino assessed that the “simplicity” that the QAR “should help create” would not only reduce future adviser exits but could also increase the volume of new entrants.
“The onerous framework that QAR will hopefully unwind has resulted in the advice community being considerably less pleasurable to be in as well as to have created quite an uncertain environment for young people considering a career path. Simplifying and adding certainty will, in my view, both reduce exits and increase the volume of new entrants into our community which is much needed.”
Similarly, Dr Hunt believes it carries a lot of weight.
“The implementation of QAR will liberate the whole sector to potentially unite to give more Australians good financial advice — this would be a wonderful legacy for Minister Jones.”
Last week, Mr Jones revealed the government’s QAR response would be made public by early June. Both Mr Ardino and Dr Hunt trust that the minister will stick to this timeline.
Some overly optimistic views expressed in this article. My licensee has informed us that SOA’s will continue regardless of whether QAR is implemented in full. The name may change, and some minor elements could change, and potentially a client won’t receive it. But all the hard work that goes into creating an SOA will continue to be required. This they say, is what every other licensee they have spoken to is saying, plus the PI insurers.
Removing the TMD declarations and streamlining consent are positives, but only takes us back to where we were a couple of years ago. Hardly cause for celebration or the outlandish claims made by Hunt and Ardino. I hope they are right, but strongly doubt it based on what I have been told.
Barrier to entry. What nonsense!!
Called a certain super fund yesterday, the recording was “”” we can provide you with general personal advice for free! “””” General Personal Advice for free????? Lets just think, what is general personal advice? Its either general advice or personal advice surely. Dosen’t the member fee pay for it so how can it be free? False advertising anyone? , Mmmm, that’s not going to confuse anyone is it . Can I say my advice is free too as I take it from the members account not them directly? Why are we in such a stuffed up situation here with funds having the ability to advertise FREE advice, when its not someone is paying for it somewhere! Lies and damn lies and more lies
They are all in it together?