ifa has learnt from multiple sources that Treasury is hosting a series of roundtables, beginning today, with stakeholders, including representatives of institutions and adviser groups, to work through the legislative and technical details of the government’s financial advice reform package.
The first series is expected to address the new class of advisers, best interests duty, statements of advice, and superannuation nudges.
The roundtables are considered a standard procedure for Minister for Financial Services Stephen Jones to gather additional information before turning his focus on developing exposure drafts.
Once these exposure drafts are developed, advisers will be invited to share their input as part of a wider consultation process.
Last year, the minister insisted that all Quality of Advice Review (QAR)-related legislation would be out for consultation in early 2024, however, with February already in its second half and additional roundtables expected in the coming weeks, it appears increasingly unlikely that Mr Jones will meet his deadline.
The minister’s last QAR-related announcement took place in December last year, when he delivered the government’s final thoughts on the multiple stages of its QAR response.
At the time, he announced that not only does the government want to see superannuation funds expand their advisory powers, it also supports the creation of a new class of financial advice providers – “qualified advisers”.
Advisers were expectedly outraged with the proposal to grant workers of institutions, including banks and insurers, the title “qualified adviser”, especially since they might only have a few weeks of education and a diploma.
Beyond this announcement, the minister also said the government intends to replace statements of advice with an advice record that provides clients with “helpful information in plain English”, alongside a number of other tweaks that could somewhat ease the regulatory burden on advisers.
That’s a very, very big round table that Mr Jones has…..so big, I suspect by the time he gets back to the place where he started, another election will be brewing.
When you are dealing with round table after round table….you end up just going in circles.
FAAA call the government out.
I didn’t see anyone calling for lower education levels in the last 5 years. I still have to complete my education before the end of next year or i will lose my job (yes a know I have had heaps of “time”) family health issues parents very sick, running multiple businesses with staff and also completing a reno with unreliable trades, and having two kids that “time” is limited. I have over 12 years experience as a planner but still don’t meet the definition of experienced.
What a disgrace we are even talking about removing education for product providers sales reps to give financial advice to flog products and collectively charge clients for financial advice they wont receive. FAAA do something about it.
I can see the end result a mile away. The insurance industry will end up employing what was similar to tied agents, pre FSR (2000). AIA are already advertising for “Insurance Consultants” who are required to have RG146. The banks will go back to having “Investment Consultants” providing advice on a very narrow range of options, likely aligned to their former platforms that they all still have ties with one way or the other. We are already hearing rumblings of more major super funds such as Brighter Super considering exiting holistic advice. They will all employ “qualified advisers” and will only provide advice on their own investment options. It is likely that super funds will not help members work out how much insurance they need as their offerings will not fit all scenarios. And then we wait…..until the complaints start rolling in about the advice provided and a future government will spend another 10 years forcing the industry toward something like FSR again. The more things change, the more they stay the same.
I don’t know what’s wworse: LNP being confidently ham-fisted or Labor being tepidly mediocre.
I love this!
All talk no action, typical politician. Lots of tough talk coming into the election, promises about fixing the “hot mess” with “quick wins” and delivery nothing. Nothing will be achieved in these round tables as the two most important stakeholders, advisers and clients, will be represented by bodies they have their own agendas and do not truly care about the end outcome of the poor regulations currently in place and those being proposed.
No surprises that we dont know who is involved/invited to these
Wehen the advisers get another bad deal Govt will claim to have consulted with us but in truth theyve only consulted the industry members that will agree wtih them.
All talk….no action – really fixing the “hot mess”!! Well done Mr Jones.
Is this a joke ?
The length of time this is taking is ridiculous.
Do you honestly think a person who brings the title “Qualified Adviser” to the table , given the history of this profession, has a clue ?
What an abject disgrace. On all levels.
All talk no action Jones doing his best work again.