Speaking at the annual conference hosted by the Association of Independently Owned Financial Professionals (AIOFP), Financial Services Minister Stephen Jones said he expects to receive Michelle Levy’s final report by the end of this week, but added that he would not be providing “running commentary”.
Instead, the Minister said he would consult with advisers next year.
“I made a commitment upon coming to government that I wouldn’t cancel all the work that had been done around the Quality of Advice Review. Michelle Levy — I met with her within the first week of being sworn in and I told her I wanted the work to continue. I told her I want a report before Christmas and I anticipate I will receive that by the end of next week,” Minister Jones said.
“That will be a part of my Christmas reading so that I am in a position early next year to consult with you [advisers] on the reforms that we’re able to put in place as a result of that review,” he added.
Mr Jones noted that while he has received many requests to share his views regarding Ms Levy’s recommendations, he does not wish to “breach my principles”.
“Time and time again, I’ve been asked by members within [the] industry and the product manufacturers to express views on the things that are subject to Michelle’s review whether it’s about the quality of advice or commission issues, and I’ve been steadfast in the commitment I gave to her and the principle I’ve adopted publicly, and that is I’m not going to pre-empt the outcome,” the Minister said.
“What I’m hopeful of, is that I will get a report that we can work on as a government and to the extent that we can get the low-hanging fruit through and there is some obvious stuff on my mind which removes things that are done in the name of consumer protection but in reality aren’t providing that but are providing cost and red tape,” Mr Jones said.
“We can move through those things quickly, but there might be other things that take more thought,” he added.
Mr Jones also hinted that he would take “a look” at the exam format once the QAR outcomes are assessed.
the industry super funds will be workshopping an answer – dont fret – always trust a union
Oh great, more consultation. First ASIC consulted, then Treasury, then Michelle Levy. Now Mr Jones is going to consult. God knows where we will end up, with no firm promise from the minister to even release Levy’s report
The Minister said he would consult with advisers next year.
If only he realised that the executives of the banks and Industry super funds are not the advisers he should be talking to.
Really comforting responses from the Minister and I share his well founded trepidations about separating product from advice. Hopefully no SoAs or non relevant (irrelevant) providers – or renaming this tier so they’re no labelled the same as advisers who’re bound by FASEA with heightened education standards
Peter, I believe that the (FASEA) Financial Advisers and Planners Code of Ethics is here to stay…(maybe with some subtle tweaks) It will be the cornerstone of the profession, if we are to become one…
Let me guess. SoAs will stick around, and Insutry Funds can give advice.
He did respond that he wasn’t convinced on product providers also advising but would hold off and wait for the formal report to be completed
Cmon, give him a break. He can’t do everything at once. By getting Industry funds and Banks to be able to have their sales people giving advice should be more than enough of a change for the next 3 years.
Industry funds are product providers…Labor gets election funding and support from these entities…think again!
Believe it when I see it Mr Jones
Come on Jonesy, it’s irrelevant what the report says. Just list the things that are useless Red Tape wasteful costs and be ready to get rid of them January 2023.
Given Ms Levy is very, very pro vertical integration product flogging galore from the Banks, Super Funds and Life Co’s direct from call centre sales jockeys.
But Jonesy is apparently very concerned with vertically integrated conflicted sales advice product flogging.
And the winner is …………. I have no doubt it will be vertically integrated mass product flogging.
You don’t need to be a genius to work out the outcome. The unknown is just how many carves outs to AwareSuper will be given, and what superficial crumbs to other advisers will be provided. I’ll practice my call centre pitch now “because you want to pay off your debt, I recommend salary sacrificing into the Balanced Growth Option”
Great job the FPA are doing with their “let’s not rush into it..it’s early days”. If that’s the consultation he’ll have, given they’re all ex AwareSuper staffers, we’re in trouble
Hopefully some common sense will prevail moving forward
ultimately to assist the Australian public so we can still work to assist them at an affordable level
Hate to be a downer but whilst I agree with your sentiments I really don’t see it happening.
100% and hopefully no SoA or cumbersome renewal docs, just 1 pager clear to understand accept and continue. Also hope standardizing forms and applications and acceptance of digital signatures is fast tracked too.
I guessing the ones that assist his union fund masters the most will be the ones he moves on quickly.
Seems to fit with everything else for the last 15 years.
Bit of a coup for AIOFP.
except he said the same things at the connexus lunch last week