Speaking at a dinner organised by the Association of Independently Owned Financial Professionals (AIOFP) for its members in Canberra, and attended by ifa, on Tuesday night, the shadow financial services minister accused the government of being “captive” to “union-run super funds”.
“Its approach to advice reform has prioritised that part of the market,” Howarth told attendees.
“Independent advisers are not a priority for the Albanese Labor government. And this is, I think, an anti-business government.”
Howarth highlighted the 700-day delay in implementing key recommendations from Michelle Levy’s Quality of Advice Review (QAR), arguing the government has reduced reform to a “last-minute” effort.
“Now regarding the Quality of Advice Review, this was supposed to be the starter’s gun for advice reform, not the finishing post in the last week of 2024 with the risk of Parliament not even coming back next year.
“They’ve also taken a pick and choose approach to it, putting together a sweetheart deal for the industry super fund owners.”
Howarth said that while there are “a few good things” in the government’s upcoming draft legislation, “it barely scratches the surface”.
“Much of its focus is on the super funds and bigger licensees. That’s fine, but it isn’t the whole story, and there was almost no chance of getting this legislated before an election is called,” the shadow minister said.
Howarth added, however, that the Coalition will engage in “good faith” with the government’s draft legislation.
“These delays are on the Albanese government,” he said.
Howarth also briefly praised Minister for Financial Services Stephen Jones, noting that while he “has good intentions”, he doesn’t enjoy the support of his government. “Jones is swimming against the tide and doesn’t have the support from superiors in cabinet,” he said.
Howarth also slammed Labor for the cloak of secrecy surrounding the second tranche of advice reforms, confirming that Treasury meetings required participants to sign non-disclosure agreements.
Accusing the government of sidelining transparency in favour of backroom deals, the shadow minister said: “Most stakeholders have been totally excluded from these processes, including independent financial advisers.
“You will be given a take it or leave it legislation that has been cooked up in the dark.”
Also addressing attendees at the dinner, Minister Jones refrained from providing a clear timeline for the release of the government’s second round of reforms, though he assured it is coming “very, very soon”.
“There’s a lot of work to be done,” Jones said, adding that the government “will be implementing the majority of those recommendations, but not all of them”.
Offering limited details, Jones reassured attendees that the new class of advisers would not undermine the profession but will instead create an additional “career pathway” into it.
Let’s get Kenneth Hayne to do an inquiry using his extreme, ultimate high ground, ethical approach.
At least Wayne Swan is in the cross hairs over his CBUS chairmanship. Hopefully this raises the public profile of the conflicted relationship between Industry Super and the ALP. The industry must take full advantage.
“You will be given a take it or leave it legislation that has been cooked up in the dark.”
Well that’s exactly what we got from O’Dwyer and Hume as well, and let’s not forget that QAR was put together with a lawyer who acts for the big end of town, with little input from IFA’s.
If Howarth is promising a better relationship with IFA’s, then perhaps he can put his IFA friendly policies in writing prior to the election because at this stage I have zero confidence with either party.
Because it happened in the past doesn’t mean you discard it with an engaged minister interested in change with family experience in small business and accounting. Jones and Labor have guaranteed they want to bury real advisers and promote under qualified bias salespeople under the guise of financial advice. Wake up
What a surprise. I’m shocked.
Not…. Of course the ALP will seek to look after their mates in the name of access and affordability.
Yet at the same time do nothing to assist professional financial advisers in the name of ‘consumer protection.’
Australia is a joke.
ALP out.
Vote them out.
Yes or No answers how did that go Peter?
Labor are and always have been the puppets of the ISA.
You simply cannot cut off the gravy train of funds that flow from the redirection of Industry Super Fund Directors fees to Trade union & Labor associated entities.
This model is riddled with conflicts of interest & a use of monies to a Govt that cannot & will not say no to the millions and millions of dollars that flow to them every year.
The Labor Govt have an inherent dislike of IFA’s as they are seen as competition to the building of FUM inside the Industry Super sector.
Whatever the Labor Govt or Jones states to keep IFA’s hanging on a thread of hope is nothing like will be being discussed behind closed doors.
The only paramount goal for the Labor Party is to do everything in their power to assist the ISA in complete domination of the superannuation space at any cost.