In a note sent to members, AFA chief executive Philip Kewin noted that an election will be held by May at the latest, and expects the royal commission to be an issue in the election.
However, he said the industry body is also of the view that “very little legislative change is likely to happen prior to the election”.
“Whilst there is likely to be a lot of political support for the recommendations, it is important to appreciate that any legislative changes still need to be put in front of the Parliament and that this can be expected to take some time,” Mr Kewin said.
“We will firstly need to wait to see how the political parties respond to the final report.”
Mr Kewin also said the public interest around the royal commission final report will likely lead to a level of discussion among clients and consumers in general.
Hence, he said it is important that advisers are open with their clients on the implications of the report and the potential consequences for them.
“We all have a role to play in making sure that Australian consumers have faith in the financial advice sector,” Mr Kewin said.
“The next few months will be an important time to clearly articulate and demonstrate the value of financial advice.”
The AFA noted its concerns with what the royal commission would recommend on:
- Changes to the licensing regime and vertical integration,
- The banning of grandfathered commissions,
- Further restrictions on life insurance commissions, and
- Constraints on clients paying for ongoing advice from superannuation accounts.
“We are very conscious that the outcome of the royal commission recommendations will place further pressure on the financial advice community at the same time that we are dealing with the implications of the Professional Standards reforms and the FASEA requirements,” Mr Kewin said.
The royal commission final report is due to be handed to the government on Friday, 1 February and will be publicly released at 4:10pm on Monday, 4 February.
OI!!! IFA….why aren’t my comments being aired????
No swearing, no racisim, no sexism, no derogatory comments yet lately I see other people’s comments popping up with F-words!! Not happy one bit.
Bad enough FASEA, ASIC and the Government are sticking it to us….what gives?????
we are the only ones stupid enough to not give it back.
i have called for it time and again. but no one wants to get off their duff to fight back
Terry are you coming back or not. Need ya
too busy preparing for his trial, it’s happening middle of this year.
can’t wait. he will come out swinging. we need to get that pencil neck, good for nothing parasite kell on the stand
its gonna [size=[s:!:ize=24px][/size]10px]BLOW[/size]
Agree with the timing estimate, and Shorten will use that as an excuse to go far beyond the outline of the RC if he’s elected to eliminate as much of our profession as possible.
Aside self preservation (or if you’re a puritanical holier-than-thou ‘the RC shan’t affect me because I am perfect’ delusional type – which we often get commenting on here), you still need to be talking to your clients so they’re aware of what voting Labor means for our economy i.e. the artificially created recession directed policies that Labor are set on implementing:
• Removal of ‘excess’ imputation credit refunds
• 30% minimum tax rate on discretionary trust distributions to adults*
• 49% top MTR
• Negative gearing restrictions for real estate and passive investments
• CGT discount reduced to 25%
• $3,000 cap on deductions for management of tax affairs
• Removal of deductibility of personal contributions for employed persons
• Non-concessional cap reduced to $75,000
• Section 293 (extra 15% super tax) personal income lowered to $200,000 from $250,000
• Abolish catch up concessional contributions
• SMSF borrowing abolished
• Accelerated schedule to increase super guarantee to 12% (sounds good for employees, but will have an impact on businesses being able to afford to increase employees’ wages)
A good summary is provided by the chartered accountants website:
https://www.charteredaccountantsanz.com/member-services/technical/tax/tax-in-focus/australian-labor-party-policies-for-2019-federal-election
Happy to debate any of this with the die hard loony lefties who may think Shorten & Bowen are honorable Einsteins, and not the intellectually impaired inbred sons of Laurel & Hardy.
Remember the good old days…
the economy is tanking. housing bubble is going to blow up in the next couple of months as lenders stop lending and increasing interest rates as their cost of funds go up
it’s not going to be a recession, that is too mild. it is going to be a depression.
Australian Super just put up their admin fee’s up 50%
That explains the feeling perfectly that I now have with this industry and my future in it…:cry:
Thanks anonymous. It’s a shame the AFA, FPA, et al aren’t giving us this list of bullet points to assist us with client conversations.
too busy tweeting