During a keynote at the Responsible Investment Association Australasia’s (RIAA) RI Summit on Thursday, 7 April, Stephen Jones said that, along with cyber crime and the payments system, the Labor party has identified the advice sector as a top priority, which he said is in “meltdown”.
“Poorly managed change on behalf of the government, huge gaps that exist and I think there’s an urgent job of what to be done in that area,” he said.
Mr Jones said an Albanese government would pledge “stability and certainty” for the financial services industry and would allow the current regulation imposed on the sector to be “digested”.
“That means giving the sector some room to breathing space to do that,” he said.
“We don’t need the sector looking over it’s shoulder for the next regulatory hit to come from a government. What you need to be doing is focusing on the interests of the people that you invest on behalf of.”
Mr Jones’ comments come after a recent appearance on the ifa Show podcast, in which he promised to overturn current education requirements for the advice industry, saying Labor would not require advisers with 10 years of experience and an “unblemished record” to complete a university degree to practice.
Currently, existing advisers with no degree must have an approved qualification by 1 January 2026.
“Let’s take a step back and say, ‘let’s do some recognition of their prior learning and experience, not a Mickey mouse job’. So we’ll do it properly,” Mr Jones said on the podcast.
“There’s been some concern in the sector for everyone who’s done the degree that, ‘That was a waste of time for me when somebody else is going to get a free ride?’
“We’re not saying it’s a proper recognition of your professional experience and qualifications so that you can jump through the right hook for you in a way that is good for you, but safe for the people you’re advising.”
On the same episode, the shadow assistant treasurer gave a candid assessment of the financial services industry, labelling the poorly managed “tsunami of regulatory changes” as the main culprit for adviser exodus in Australia.
“There was a whole bunch of changes that were in play, there was a known timeline for it, not going back months or even years. Some of this stuff has been five, six years in the making, how a government could monumentally mishandle a bunch of this stuff is beyond belief, particularly a government that says it’s a good economic manager.”
Listen to the full podcast with Mr Jones here.
“Poorly managed change on behalf of the government (of which Labor supported it ALL), huge gaps that exist and I think there’s an urgent job of what to be done in that area,” Jones said.
But then he says to do NOTHING to FIX the BS mass Over regulation.
Canberra Pollies both LNP & Labor are as useless as each other. Then add ASIC with the likes of Ms Press and their own always Anti Adviser interpretation of the law through thousands of pages of BS REGS.
[b]Canberra’s entire bureaucratic mess needs to be cleaned out, get rid of them all and start again. [/b]
Jones is a Union man through and through. Trust him at your peril.
Clearly wants union supported industry funds to provide all advice in future. Labor has never wanted anything else
To quote Chris Bowen after the Hayne RC “the ALP if elected will immediately implement every recommendation of the Royal Commission” “we don’t need to see what’s in the final report to know we will immediately make these changes”.
And Mr Jones is also the member who has repeatedly asked for the removal of all insurance commissions including existing trail…. The ALP are nothing more than a Wolf dressed in sheeps clothing
Anyone who thinks Labor will look after financial planners clearly has rocks in their head!
So Jones wants to keep the legislation in place which is causing the meltdown. We want and need sensible amendments NOT STABILITY!!!
Where was Mr Jones and the Labor party when the Liberals were hammering our industry with over regulation, destroying peoples lives as advisers and even contributing to their deaths in a sad but tragic few, to now say that they are going to give our industry priority to do what?
He has already come out and said that he is against commissions in risk advice. So does he understand how risk advice is provided? Does he understand supply chains when it come to our sector.
Mr Jones is a lawyer who joined the Community and Public Sector Union (CPSU) in 1993. He worked in various roles, including NSW branch secretary and secretary of the Communications Division. He was seconded to the Australian Council of Trade Unions (ACTU) in 2004, where he worked to secure compensation for victims of James Hardie asbestos-related disease. Stephen Jones was elected as national secretary of the CPSU in 2005 and led the union’s campaign against the Howard government’s WorkChoices industrial laws in the lead up to the 2007 Australian federal election.
So, when it comes to our industry, I’m certain he will take a look at our industry so as to favour the Industry Funds only. I hope I am wrong, but a leopard doesn’t change its spots.
If Mr Jones had any integrity whatsoever, he would have stood up for our industry as it began bleeding, questioned every aspect of the changes we have had to endure under a barrage of lies and deception by the Liberal Government and have insisted upon a regulatory impact statement first before the changes were pushed through.
Personally, I believe Labor simply allowed the Liberal party to do the damage as indeed they knew or ought to have known the outcome for the sector by not challenging anything.
Another comrade of Mr Jones is Labor Senator Jenny McAllister who has insisted on calling our industry and its advisers “shonks”. Did Mr Jones object to such statements on our behalf ? No
Both the Labor Party and the Liberal Party are a disgrace and are bent on destroying this once proud nation bit by bit to achieve a political agenda and or ideology.
If they remove commissions on risk, consumers will be worse of as a result. But will this stop further attacks on our industry, probably not. What about other sectors such as mortgage broking. Would that be on a hit list also?
Face it, Labor or Liberal, they are both evil and not to be trusted. Ever. Why?
Because they simply don’t care about you, your business, your family, your clients. Simple.
They were voting for it and asking it be made worse, this bloke’s actions speak louder than any words he offers.
Jones might be a liar, and he might make things worse.
Hume definitely is a liar, and definitely has made things worse. She has a clear track record of dishonesty and incompetence, and shows not the slightest sign of improving.
I’d rather take my chances with Jones than put up with more of the same from Hume.
Really, dont vote for anyone if you dont trust them
Both parties will promise the world to get a vote! Get the lawyers and the politicians out of the profession; they have no idea how the rules etc relate to the real world! I suggest that the various industry bodies get together and put together relevant documents for 1) Educational Standards to include all specialties of advice providers and allow for these specialties; 2) Develop a workable guideline for key documents to dovetail with the Corp Law requirements; 3) Formulate a generic code of Ethics that applies across the board (combined ASIC [ex FASEA], FPA, TPB). FSC and ASIC panels should have pracitising financial planners/ advisers on any regulatory/ enforcement body. Tired of been overloaded with red tape that doesn’t improve the client experience, quality of advice and efficiencies of our profession.
It is frightening to think there are so many advisers out there that are so disillusioned to think Labor will be better option than Liberal. Yes liberal have destroyed us, but Labor will take us to the depths of despair, and beyond, yes its possible!. Labor are fully in cahoots with industry funds, and will do everything in their power to grow their market control, because they fund the unions, whom influence politicians via donations. What a criminal enterprise. This frightens me more than any other issue we face. If you vote Labor, then I must say you are not fit and proper to be a Financial Adviser based on this fact alone. Labor is not the answer to our problems.
No one is saying Labor is the answer.
Perhaps you direct your anger towards the Licencees, who are NOT fit to hold an AFSL!
The advice industry actually needs ASIC & APRA to be reigned in; they are both big, bloated bureaucracies out of control.
If a client signs an annual fee consent form , then they are signaling, as an adult, that they are happy with the services being provided and the fees being charged. There is no role for government and their red-tape bureaucracies.
Absolutely agree. These public sector bureaucrats are costing the industry a fortune and achieving nothing. Yet they find it puzzling that the cost of advice is not ‘affordable.’ ASIC and APRA have no incentive to be more efficient – indeed it is in their interests to find more ‘problems’ so that they can seek even more budgetary funding.
Well, between the AFA/FPA, the bloated ASIC bureaucracy and the compliance dinosaurs in our dealer groups , we are stuffed – I spend 60-70% of my time responding to Compliance rather focussing on my clients. AOIFP (though pro labour which I am not) seems to have forced backdown on degree requirements (I have all mine in place anyway)- so perhaps we should look to Peter Johnstone to bring pressure on the government to reduce red tape . There is LITTLE CHANCE that the government will do this on their own whether Lib or Lab.
They also seem to have mostly staff who are on power trips and enjoy playing with Advisers’ careers, despite consent having been received from clients and zero complaints in some cases. Honestly, hearing a guy the other day saying he had to explain in detail how his recommendation of $100k extra (compared to an ASIC Delegate’s…didn’t even think it was their job to say what should be recommended as long as it wasn’t illegal) in Life insurance was appropriate given the specific client’s circumstances and wasn’t in fact to make extra money from the client (client earning half a million a year and additional premiums $100) as the Delegate accused the chap of is just ridiculous. And he got banned for life. And even worse, the client in question was happy with the advice and stood up for the Adviser saying he still wanted the recommendation! A government isn’t going to overcome these sort of issues, because it’s public servants running the show, not the politicians.
And then the next step should be to overhaul ASIC and remove the deadwood who are taking easy inflated salaries but have, in many instances, no idea when it comes to the matters they’re supposedly regulating, have strong biases against Advisers, no professionalism and no ethics. Not to mention KPIs linked to banning numbers.
How do you know when a politician is lying. Their lips are moving. The key point is the ALP is just as guilty as the Libs in passing a huge level of regulation that has created the mess we have today. The ALP even stated that they would be going at the Hayne recommendations harder. So sorry Mr Jones, your words now mean nothing.
And if any of you believe anything a Labor MP says prior to an election, you should jump on your unicorn and fly over the next rainbow!
Socialist, till raiding liars and thieves – every last one of them. Just look at the position every Labor run State is in today – 6 out of 7 of them today.
Do not trust them – they will come after everything you’ve worked for. There are OTHER options top them and the LNP now. You have been warned.
Mr Jones, weeks out from the election and you still haven’t outlined in full your actual policies for the industry. Advisers aren’t going to vote for you just because you’re not Jane Hume.
Amazing they’ve spent so much time in power wiping out advisers, and spent so much time in opposition blocking legislation, blocking all attempts to change FASEA. Blocking any attempts for reforms. Now in the last 3 months just prior to the election they’re trying to be everyone’s best mate. Sorry we’re not fools. When it comes to Financial Legislation Mr Jones and Mr Albanese won’t be running things. As in the past Australian Super and Union Super funds will be deciding legislation. And that scares me more than any incompetent Liberal Government listening to the FPA and the AFA for direction. I’ll be doing the Donkey or voting for the Australian MonoRail party this time.
Blocking all attempts to change FASEA? What attempts? By whom?
That was the whole problem with FASEA. No-one in government made any attempt to fix it, even when it was abundantly clear it was off the rails.
The first attempt any politician made to fix FASEA was when Jones himself announced an intention to allow greater recognition for experience and prior learning.
Bit late isn’t it? I mean more than 40% of advisers have already left and there’s still another 4 years to go
Great to say that Labor will fix it, but if their only answer is the recognition of prior experience then they won’t be fixing anything.
Here is a list of ways to improve things Stephen:
1. Allow commissions on insurance
2. Encourage independence to separate product from advice
– tax deductibility for all fees from all independent advisers
– remove SOA, FDS, ROA requirements for all independent advisers
– where advisers recommend their own products, make it clear how much their AFSL/owner will be receiving in fees
3. Include super in Consumer Data Right regulations
4. Ensure advisers have access to ATO client data
5. An exemption of retail financial advisers from the DDO obligations
Here here! Dont understand why you’ve got all those negative thumbs? Why is it ok to allow lawyers to do no win no fee, or Dr’s flog certain medication, or even legal aid be subsidised by the tax payers, and even political parties receive donations, how is this any different to receiving commission, which is merely a method of payment, by the advisers.
The Gvt saw us as the enemy only because they wanted a slice of the pie that the fund managers and product providers were getting. This was never about the adviser it was all about the corporate and gvt greed, under the pretence of ‘best interest for the client’. Why not let the client decide how they want to pay!
Why so many thumbs down? These suggestions by the OP seem reasonable?
So many thumbs down, because most Advisers these days work in a TelstraSuper or AwareSuper call centre and none of these suggestions really benefit them at all. Only benefits real planners and Australians, not a Super fund flogging stuff. Actual real planners are diminishing and most self employed planners realized they could make more in wages “selling” I mean working for the above firms.
[i]”how a government could monumentally mishandle a bunch of this stuff is beyond belief, particularly a government that says it’s a good economic manager”[/i]
This quote really sums up the bias and incompetence of Hume, Frydenberg & O’Dwyer. They have got to go. It would be impossible for Labor to be worse.
Kelly o’Dwyer left politics over three years ago. Now a board member of none other, than Equity Trustees.
I suspect it’s a case they consulted with “industry” and didn’t actually talk to any Advisers. And I suspect most Advisers simply say I’ll leave it to my licensee or the FPA to look after me…not really a good strategy in my books.
As the Fox said to the Chickens, on the eve of an election.