A small audience of superannuation fund CEOs and senior industry executives will be the first to hear the government’s response to the Quality of Advice Review (QAR) at an exclusive event organised by the peak body for the super industry ASFA, ifa has learnt.
ifa has seen the invitation addressed only to high execs, “cordially” inviting them to attend an exclusive breakfast with the Minister for Financial Services, Stephen Jones, on 13 June.
As per the invitation, it is here that the minister “will announce the government’s highly anticipated response” to the QAR.
Promising them a “unique opportunity to lift the quality of advice for superannuation fund members”, ASFA underlines that only “a small audience of fund CEOs and senior industry executives” have been invited to attend.
ifa also reached out to ASFA where a spokesperson confirmed that the event would indeed serve as the platform for the minister to unveil the response.
The government’s response to the QAR has been highly anticipated by the 16,000 financial advisers operating in the industry.
As reported on Wednesday, ifa learnt that the response is currently before the cabinet and that it should be made public within the next seven days.
Minister Jones has previously been criticised by advisers for enjoying a seemingly close alliance with super funds.
Speaking at an Industry Super Australia event earlier this year, the minister gave a firm indication that he is leaning towards heeding Michelle Levy’s recommendation to up the role funds play in the financial advice space — a proposal that has received a frosty reception from advisers.
“There are 16,000 licenced financial advisers in the country, so the numbers don’t square. So, we’ve got to find a way to deliver information and advice to members who are approaching retirement,” Mr Jones said at the time.
“Whether you like it or not, one of the first phone numbers that they call is their superannuation fund. At the moment, law that has been passed by the previous parliaments, supported by me, puts an obligation on funds to put in place a strategy for their members for their retirement phase. And at the very same moment, we put in all of these obstacles, which make it almost impossible for the funds to do anything about that. So, I’m keen on squaring that off,” he explained.
This, however, is not the first time Mr Jones has dropped such hints. In March, he confirmed he was seriously considering allowing entities other than relevant providers — professional advisers currently registered as such — to provide advice.
As part of the QAR, the reviewer, Ms Levy, recommended the removal of obstacles that prevent super funds from providing more retirement advice to their members.
ASFA members, and possible recipients of the exclusive breakfast invitation, include among others the country’s biggest funds Australian Super, HESTA, and the Australian Retirement Trust.
ifa has reached out to Minister Jones for comment.
Advisers deserve everything they get!
Advisers have allowed themselves to be “represented” by a body that clearly does not represent what is best for the advice community. Why should government (or the FAAA for that matter) give a tinkers cuss what advisers want?
LIF, FASEA and loss of grandfathered revenues were all attacks that went unanswered and so, the continued attacks shall continue.
I will be setting up a product division and vertically integrating so that at least I can compete with the fat cats.
Before we all drown in hysteria, why not look at the positives.
There will be no mandated SOAs or FDS. Sure, having super providers giving advice is actually going to be really bad for consumers, but it won’t change the number of clients that want advice independent of their super fund or insurer.
There is a lot of angst about where the QAR announcement is made, however what is critical is what is in the announcement. We will all know soon enough. If the advice profession gets what it wants, then the forum for announcement becomes almost entirely irrelevant. There is too much focus on conspiracy theories and looking for problems. The momentum has definitely changed and there is every expectation that we will get a good outcome. I suggest that we all just cool down and wait for what will hopefully be a very interesting announcement next Tuesday.
Well it’s now late in the day. Our new larger, bestest association has had time to pen a thoughtful media message to it’s members, or respond via a media release to everyone about their thoughts on a QAR response being delivered to a intimate room of ASFA members. After all, on the front page of their new website is the heading “Policy & Advocacy” (just below to link promoting CFP designation courses). So where is our FAAA response to Govt? Did they get an invite to brekkie?
This is totally unacceptable and is a slap in the face for financial advisers. I know the FAAA board and the executive team will be fuming..
100% not surprised.
Would it be cynical of me to highlight the response has been delayed to an advisers busiest time of year?
The unions will be stoked.
This brazen briefing for product providers shows how disgracefully inept our professional bodies are. Imagine the health minister having a secret meeting with big pharmaceutical companies, to announce the doctor shortage will be solved by allowing big pharama to sell their products directly to consumers and let their unqualified staff dish out free medical advice over the phone. Reckon the AMA would have something to say about that!
How insulting can you get? Or is it just plain ignorance. Advisers deserve better than this.
I have been a CFP and member of the FPA / FAAA for 20 years and have never once complained about the limited impact the association has in putting forward member’s views to Government, although I have often been unsure about the value of my membership every year when I pay the fee (especially that marketing levy that was imposed). I pay my membership every year and just get on with doing the best I can for my clients. I am really curious to know what feedback the FAAA will provide to Minister Tin Ear (oops.. sorry… Jones) on behalf of its members about his decision to make a significant industry announcement to a select few superannuation fund CEO’s. It’s times like this that we will find out what our professional body stands for and how vocal they will be in communicating our anger at the Minister’s decision that this forum is the right one to make such an important announcement about our profession (assuming the report that he will make the announcement at the ASFA breakfast is correct).
Well, thats me done.
Been in the industry for 18 years and if the industry is sent down the product pathway it will be a shambles.
We are already experiencing poor support/service from certain product provides and now its these very products that are going to be providing inhouse advice.
recent example of how successful products are at providing advice
couple retired in 2019. had $500k in super and established income streams with their existing industry funds. Both were mentally burnt out.
1. The industry funds didnt provide them with advice on potential insurance claims
2. The industry fund acknowledged their request to commence income streams, established the accounts and nominated pension payments. Not factoring in that the drawings would quickly wipeout the accounts.
fast forward 2023
same couple have $100k left in super and have 2 years left of money at their drawing rate.
While they both burst into tears in my office, they said “we wish we saw an adviser, someone to set us up correctly and not just got a head with what we thought we wanted. Why wouldnt our superannuation funds lookout for us and tell use we would runout of money”
So Mr Jones, if this is what you want and feel the need to support bad advice from industry super funds then god help Australians!
Advisers, you will now be competing with super fund employees. First to waive all fees wins the client. BTW, the client loved the TV advertisements comparing water-melons and beetroots before paying in peanuts.
Hence why places like IOOF were hell bent on getting rid of any adviser that was a business owner and not just a an employee of them. Look at bridges for that example.
Former Bridges offices are now operating under different Insignia AFSLs
Throughout this entire saga, the principal component has been missed.
Professional advisers don’t simply provide advice in client’s best interest. The information we obtain prior to any development of strategy and subsequent recommendations is not only pivotal to our advice, but the establishment of trust and a long-term relationship whereby we commit to accompany them throughout their life journey.
Successive governments have failed to understand this.
And this is what the AIOFP was pushing for all advisors to vote in the ALP at the last election because Jones would be our savior!
So True.
The QAR was established by the Liberal Party directly – Jane Hume, as was FASEA etc. Very hard to make any argument to continue with the proven track record of the Liberal Party.
Now that Labor has inherited QAR, if they choose to favour product Providers over qualified Financial Planners (who vote and have clients who vote) it will be Labor who gets no votes at the next elections.
That will then be two major Political Parties (Liberal then Labor) who have PROVEN THEMSELVES not worthy of receiving votes from any Qualified Financial Planner in my book. Votes are trending away from the major parties = I wonder why?
New graduates won’t be needed to replace advisers… the super funds will train their staff, not on the FAR, not done FASEA exam and don’t have degrees or personal advice experience and that will be the way that Ms Levy appointed by the LIberals who received political donations by the finance industry will get advice to Australians. Not surprised by Minister Jones informing the CEO’s of fund managers first – they are owned by the banks…..sadly.
Don’t forget keeping those profits growing in house as well.
I assume it’s to check Mr Jones didn’t make any spelling mistakes when he was typing up the QAR response they wrote for him
Wow – just wow.
Conflicted advice, Code of Ethics
Only licensed financial advisers are weighed down by the complex code of ethics. These super funds will be unhindered by any such nonsense. They won’t need qualified staff, not even RG146. Get ready for the massive ad campaigns – ‘come to us for FREE financial advice’. It is going to be a farce and FAAA are a disgrace for enabling it
that was the whole idea – to make the legitimate provision of advice non commercial – then the fee refugees could say the super fund was good to them. Funny thing is – there is not a client yet from industry funds that I haven’t been able to migrate away from the fund – so many good and better more transparent options.
What an absolute and unforgivable disgrace this is.
Before the election and in opposition,Jones tricked the battered & vulnerable advisers to promise to ” fix the hot mess ” and now he shows no respect to them whatsoever by avoiding them.
He quite obviously does not want to face questions or queries in relation to the QAR from those who will be most impacted.
Well, in fixing the ” hot mess “, Jones has just crapped in his own back yard.
He can’t even summon the courage or guts to face those who deliver quality advice to millions of Australians.
Perhaps look at it in a different way. Yes, he said he will fix it and it appears he will – you like many just assumed he meant fixing it for Qualified Financial Planners – but perhaps that is not what he meant by “fix the hot mess”.
Looks to me this presentation to the chosen is the victory speech of a long road to remove all competition of Industry Super allow Industry Super retain FUM – and provide advice at a complete competitive advantage via legislation? But I could be wrong. Sad thing is, the Liberals essentially did it for Labor and Josh Frydenberg said he was proud of his achievements in Superannuation on election night.
An amazing time in the history of Financial Advice we live in?
Why the hell should I move from AFA to FAAA?
Too late. Too soft. Too concerned with presenting a “reasonable” face when talking to Government. And too concerned about “consumers”, not advisers!
Using this analogy anyone who has a tax question should ring the ATO, not their/an accountant? Did the FAAA get an invite?
What are our associations doing. So ineffective and impotent, he’s directly speaking to asfa after 12 months of lobbying, why do we have associations?
They should be highlighting this to the media as we speak. The minister is compromised by this conflict. Look at the scrutiny that advisers get, even over just a perceived conflict. It’s high time politicians get the same blowtorch.
Agree, but what WILL they do? I think we all know, nothing.
FAAA had a meeting with Jones last week if you care to read your emails
Email noted meeting without any indication of timelines progress or initiatives, compare that to a paid intimate closed door funded session detailing their response. Chalk and cheese, and delusional to think otherwise.
lets be real when was the last time any of these associations did a thing for independent planners
Maybe stop hindering advisers from doing their job and we can attract new graduates into the industry who at least will have tertiary education and a professional year behind them before they provide advice. By advice I mean non-conflicted professional advice without a 100 page SOA, not ‘good advice’ from a call centre employee fresh out of high school.
Not all advice documents are 100 pages. Stop spreading lies….
Yep, forgot about risk only plans.
Think you missed the point Mark. Back to school for you.
What point have I missed? Please enlighten me…
The point being made is that they should be focusing on retaining & building the amount of qualified advisers to meet the advice “demand” rather than being weighed down by cumbersome compliance.
20 pages is still too many. And a large portion of the contents are pointless.
So the minister wants to reintroduce vertically aligned biased advice, dictated by product. And before presenting advice reforms to true advisers, instead have a private meeting with his union mates driving products. Products ARE NOT advice, they are simply tools to meet end needs. How about this Mr Jones; present the advice findings in a private meeting to the FAAA being the peak body of advisers, not product. Hypocrite.
I’d like to see some example mock phone calls of a fund member with $750k about to retire, speaking to their current super fund with a goal of maximising Centrelink. And I’m yet to know of one client who ever says that’s great sign me up, and then never calls again with future questions of queries. It’s not transactional business. It’s a business of relationships and a good sprinkling of psychology. Good, better, best. I as a consumer, would not settle for good when best is available. And here’s me thinking it’s about value.
Huh huh huh the next Adviser stitch up arrives.
Jonesy charged Advisers to attend meetings months ago to tell them nothing.
Jonesy now invites, all expenses paid, Industry Super executives to an exclusive briefing of his gifts to them.
COMPARE THE PAIR. I bet yeh !!
1) Advisers screwed to the wall again.
2) ISA flogging conflicted, vertically owned sales advice via unqualified, uneducated call centre jockeys and robots with almost zero Regs, all paid for by HIDDEN COMMISSIONS.
REAL ADVISER STITCH UP GUARANTEED !!!
Bit rich to say the number of advisers doesn’t “square” with the number of retirees needing advice. Is Jones unaware that for the last 5 years advisers have been hounded out of the industry? Maybe we need to actually encourage participation in the advice industry instead of allowing product sales people to masquerade as advisers?
They have no clue.
Exactly!
Yep, relax the cumbersome compliance and advisers should be able to handle more clients. Couple that with the objective to grow the qualified adviser pool, and then there won’t be a problem.
Of course he has a close relationship with industry super funds, they feed his political party.
so any of the groupies have any doubt now about who is the customer and that the independents are part of the problem and not part of the solution – like he needs to get his cheer squad onside
WTAF! no words.