Speaking on a webcast hosted by the Financial Services Council (FSC), Financial Services Minister Stephen Jones was questioned about the government’s response to the Quality of Advice Review (QAR), a review it had sat on for five months.
Mr Jones confirmed that had it not been for the budget, the government’s assessment of the review would have been publicised earlier.
“We will have a cabinet consideration in a few weeks’ time. I hope to be in a position in late May or early June,” the minister said.
He also predicted that the review could be implemented in several stages.
Namely, according to the minister, under the initial stage, the government would implement those more immediate recommendations, followed by the more controversial elements and then it would tackle the most difficult areas.
The QAR lead, Michelle Levy, submitted her final QAR report to Mr Jones on 16 December. Since then, aside from initiating a review of the review, the minister has offered very little insight into how the government feels about the 267-page report.
Responding to Mr Jones’ announcement on Thursday, Ms Levy told ifa she did not expect it and was “very pleased”.
“As to a staged implementation — without seeing it, it is hard to know — but if it [is] the easiest way to ultimately adopt the whole package, then I would have no objection,” Ms Levy said.
Mr Jones’ admission came just a day after FAAA interim general manager policy and advocacy, Phil Anderson, said on a post-budget webinar that the time would “absolutely” be right for an imminent announcement regarding the QAR.
“I think that the minister has signalled that he will make an announcement with respect to the Quality of Advice Review after the budget has been released. So, I guess it’s true that the minister has been very focused on the budget as one of the ministers in the Treasury portfolio, now hopefully after he has finished with selling the budget, he has a little bit more time to devote to moving forward and making announcements on exactly what he proposes to do with the QAR,” Mr Anderson said in response to a question posed by ifa.
“We’re going to be very helpful with supporting moving forward with that rapidly,” he added.
The FAAA had previously identified a set of “quick wins” from the QAR, which they believed could be implemented promptly and have a significant impact.
“Important priorities” the FAAA has flagged include removing the obligation to do FDS and rationalising fee consent, removing the obligation to provide statements of advice, and the rationalisation of the best interest duty safe harbour steps.
“They are three of the big things, there are other important proposals that we have supported, but if we could get those three up and going, it would be a great outcome.”
It was a “ hot mess “ before an election and a slow, cool, melting ice block after it !!
He received the report in December 2022 and now it will be (maybe) June before he says anything again let alone does anything! Let’s see I wouldn’t hold my breath !
Thank you Jonesy!
Excellent!
Brought to you by the writers of Hollowmen & Utopia.
Because is it’s so difficult to estimate when a budget is being released…What th’?!!!!
Don’t understand some of the vitriol on here. Even if Jones does nothing, he will be a better financial services minister than O’Dwyer and Hume. They were a disaster for us.
100% TRUE! Hume, O’Dwyer, and Frydenburg were all a disaster
His response will be another inquiry.
Minister Jones sounds just like his boss – Mr FlipFlop Photo-Op
Funny how they’re taking a look at the QAR after the budget, like they said they would, quite some time ago. Almost as though all these spiteful articles have been written just to sow discontent.
Did Industry Super keep Labor waiting this long?
Not quite fair. He claimed it was a hot mess, that required immediate action. He then said he’s do something in Jan 23, and he wanted quick wins. He then said he’d do something after the budget. He now says he’ll do someting in June.
I suspect “discontent” is already there – Jones as an elected politician can leave himself open for more – it is his decision and he will be the one facing future elections.
Will we have to pay to hear what he has to say again this time?
Yes, it’s called the ASIC levy
Which year?
Get ready to drop your pants ‘personal / full advice’ advisers. I predict nothing but MORE pain and suffering, sadly.
Only 6 months too late, have lost all faith in minister Jones, he seems only interested in helping the industry super funds
He’ll prove you right when the “immediate recommendations” just happen to be those that favour the industry funds and the remainder of them are placed on the back burner to never be seen again. I’m still waiting for the advice improvements that were promised as part of LIF reducing the upfront commissions on insurance.
Typical Government…leave any decisions to the last possible moment, and then hedge your commitment. They should simply make a decision and then live or die by that decision. As a politician, you will normally make a mess of things anyway, so implement the mess quickly so that everyone can see the results and make future decisions accordingly…
I predict nothing favorable to advisers will come of it.
A response? How about some action? Typical politician, big talk before the election and now nothing. The most likely response we will hear is that he will seek more consultation despite him already assessing the situation a year ago as a hot mess that needs to be fixed urgently.