Jane Hume, Assistant Minister for Financial Services, Superannuation and Financial Technology, appeared at the Association of Financial Advisers’ Conference in Adelaide and told the audience that the government was listening.
“The government is listening to your concerns and we want to assure you that we are carefully considering how we will proceed,” said Ms Hume.
Ms Hume, who has a financial advice background, said the concerns in the industry were justified and the government was working towards a solution.
“We have heard your concerns and we acknowledge your fears and they are reasonable. We are continuing to work with you and we will consult with you on the implementation of the new requirements to ensure a smooth transition,” said Ms Hume.
To many at the AFA the assurance was not what they were expecting, as many had hoped for an extension to the FASEA deadline.
“I think like me you were hoping to hear a positive announcement today. You’ve heard Senator Hume is listening and the work we’re doing around the FASEA deadline is having an impact,” said Philip Kewin, AFA’s chief executive.
When asked why there was no announcement, Ms Hume continued the government line and said there were still concerns around accessibility.
“I think we can say that we have heard the concerns and some of my concerns around the deadlines are really more about accessibility,” she said.
Ms Hume also said that the government did not want a mass exodus from the adviser industry due to the changing standards and they would continue to work with the industry to find a path for older advisers.
“We want to make sure we have a sustainable financial advice industry and we don’t want to see mass exodus from the industry because of that. We think that this is a fair and reasonable process but we want to make sure that everyone has the time to feel like they can achieve it,” she said.
Older advisers were needed in the industry, said Ms Hume, as the young advisers were the future but needed that experience to guide them.
“Younger advisers tend to be more open minded as they have many of the qualifications already but older advisers have skills that are invaluable, particularly in their roles as mentors,” she said.
“We need to ensure that the standards that are set and that we impose are suitable for existing advisers and the older, established advisers.”
There was space for existing advisers that have experience, said Ms Hume, and hopefully they would find a way to remain in the industry.
“I would love to see a role for those experience older advisers, whether it be mentoring or some sort of coaching role,” she said.
Ms Hume said that the advice industry had to change, as the consumers deserved it.
“These skills, on ethics and professionalism, are necessary, this is not up for debate. Consumers deserve no less,” she said.
However, Ms Hume did remain open to adjusting the changes in the industry and everyone needed to work together.
“We know that advisers are doing it tough and we are not ignoring them. We have heard your message loud and clear. Stick with us, don’t lose faith and we want to work with you because you are an important part of the financial system,” she added.
[quote=Anonymous]“I would love to see a role for those experience older advisers, whether it be mentoring or some sort of coaching role,” she said.
disgusting comment from her. She has no idea. When you have done 30 or 40 years and clients have the trust in the senior and owner of the business, she thinks we step down and fit in some where in admin???? Government has lost the plot!.
In my thoughts, I cant see 50% of advisers staying and how do entice newbies? Thats right, try to fill up the industry with no experience.
Agreed, get the study and exam done and stop the bloody whinging. If it’s too hard then leave the industry and be grateful for earning a living for many years without academic qualifications.
Great time to be considered a LEADER but the word WEAK comes to mind
The really sad note is that there is a rumour that of the 300 who attended AFA Adelaide, only 80 were licenced advisers, and even some of those will have been sponsored by an insurer and not bought their ticket. The other 220 were probably hangers-on ( oops, sorry BDMs) and AFA SA members who were really workers at the Conference. That, therefore, I suspect, was the last of the AFA Annual Conferences, because insurers will not be able to afford BDMs soon, as there will be many fewer advisers to “service”.
Can someone close the door and turn off the air-conditioning when the last adviser leaves!
Maybe the families and staff of the supposed 16 advisers that have exited the industry, and life, should request an audience with Ms Hume so she might fully understand the impact ”change” is having on our industry!!
The AFA and the FPA, if they are ever going to save at least some of our advising industry
[/quote]
the only people the AFA and FPA are interested in saving is themselves so they can continue on their sweet as salaries and do sweet FA
if you are expecting them to do anything for advisers you are sadly deluded.
[quote=Anonymous]Just get on with it. The exam wasn’t hard and I’m sure most of those who failed in June will be fine when they have another crack at it. As for the study, it’s not that much and you still have 3.5 years left to do it. For those who need a full grad dip, you will get some credits and some uni’s are offering challenge tests which will reduce the workload and speed things up for you. Rather than whinging and complaining, you should be thankful you were able to get away with such little study for so long. Let’s do this and raise the standards of our profession once and for all. I know it’s all a bit of a pain and many of us are doing it tough. But at the end of all this, we will all reap the benefits. [/quote][quote=Anonymous]Just get on with it. The exam wasn’t hard and I’m sure most of those who failed in June will be fine when they have another crack at it. As for the study, it’s not that much and you still have 3.5 years left to do it. For those who need a full grad dip, you will get some credits and some uni’s are offering challenge tests which will reduce the workload and speed things up for you. Rather than whinging and complaining, you should be thankful you were able to get away with such little study for so long. Let’s do this and raise the standards of our profession once and for all. I know it’s all a bit of a pain and many of us are doing it tough. But at the end of all this, we will all reap the benefits. [/quote]
so your suggestion is, if i may so put it boldly is to accept everything, even if the idea is stupid, without question.
will do my master.
[quote=Rob Coyte]Another example of the ineffective representation of financial advisers by their associations in the political process.[/quote][quote=Rob Coyte]Another example of the ineffective representation of financial advisers by their associations in the political process.[/quote]
i don’t know why people keep thinking it is the FPA’s job to represent IFA’s. it’s not. most members of both FPA and AFA are from the large institutions and therefore the FPA could care less. they represent the interest of their members thank you. the ones from the large institutions. that’s all folks. please continue to pay your membership fees so you can continue to get shafted.
As to the suggestion that ‘some uni’s are offering challenge tests which will reduce the workload and speed things up for you’ I would like to know which institutions these are and whether FASEA has said that they will accept a successful challenge test as being equal to passing the stipulated exam.
Assuming that there are challenge tests being given why isn’t this communicated to Advisers.
As to ‘whinging and complaining’ I have an Accounting degree and 3 units in Statistics plus the DFP(FS) plus…. I am a Risk specialist and at the moment I will need to pass an additional 4 university subjects at $1,250 each plus the FASEA exam $600. Yet no-one has yet to show me how
1. this will improve my skills as a risk writer, and
2. as a 70-year-old, passing an Ethics exam will make me more ethical. The only guage for someone who has been in practice is their ethical behaviour to date. Unethical people can still pass Ethics exams they just need to tell the requisite lies in order to give the ‘correct behaviour’.
We also currently have Accountants without University degrees practising. How can there be different rules and educational expectations for groups both overseeing and advising people on their Finances?
We’re listening but doing SFA
Another example of the ineffective representation of financial advisers by their associations in the political process.
Actions speak louder then words
Just get on with it. The exam wasn’t hard and I’m sure most of those who failed in June will be fine when they have another crack at it. As for the study, it’s not that much and you still have 3.5 years left to do it. For those who need a full grad dip, you will get some credits and some uni’s are offering challenge tests which will reduce the workload and speed things up for you. Rather than whinging and complaining, you should be thankful you were able to get away with such little study for so long. Let’s do this and raise the standards of our profession once and for all. I know it’s all a bit of a pain and many of us are doing it tough. But at the end of all this, we will all reap the benefits.
Sometimes I wonder if these people actually listen to what they’re saying
So the much lauded adviser “united voice” Ministerial meeting in June was a “warm and fuzzy” failure. All that meeting achieved was that the Minister freed up a diary space. Yesterday she delivered only platitudes and a “pass-the-parcel to FASEA” strategy, a body which has no staff and refuse to consult experienced advisers. Apparently FASEA appear to be listening to some regulators with a “clean –up” agenda.
This Minister definitely does not want to be seen regulating FASEA. Ms Hume is apparently prepared, Emperor Nero like, to keep “listening” but not acting while our industry burns and the life insurers suffer a loss in New Business inputs.
The AFA spokesperson is on record in the Financial Standard report as saying Ms Hume’s failure to extend FASEA deadlines in her speech yesterday at the AFA Conference was “disappointing”. That fits, because that’s what the Wallabies coach says that every time the All Blacks flog us at Eden Park. No brains, and no hope.
I feel sorry for those Liberal supporting advisers who worked hard to help re-elect the Morrison government, if only because they were even more fearful of what Bill Shorten might do. I suspect their faith in their politicians has been destroyed.
The AFA and the FPA, if they are ever going to save at least some of our advising industry, must acknowledge that our industry needs representation to government by hard-edged lobbyists with political connections. Diplomatic niceties from political novices are past their use-by date. If that means cutting out non-essential, soft-focus programs directed at younger/potential members, which are the favorites of some board members, who cares. Both bodies will not be here in 5-7 years if they do not change!
The Govt really cares about small business, especially financial planning businesses. You can tell by their actions…
“Listening” means “Not acting”. Is Hume just mini-me O’Dwyer?
A bunch of political feel good BS speech – actually do something rather than waffle please !!
Go ask 60 year old politicians with 30 plus years experience to start from scratch and go back to Uni to keep their jobs for a few years. The cost benefit doesn’t add up at all, can you do the math ????
What part of FARSEA recognises any form of experience or years upon years of CPD ? NONE.
But hey now the pollies say we don’t want to lose the experienced advisers ??
Hey Pollies – the left and the right hand are NOT working together – they are pointing in totally different directions :-/
“I would love to see a role for those experience older advisers, whether it be mentoring or some sort of coaching role,” she said.
Is that code for “Financial Coach”?