The Joint Associations Working Group (JAWG) has urged the Minister not to forget the QAR.
The Joint Associations Working Group (JAWG) has penned an open letter to Financial Services Minister Stephen Jones regarding the Quality of Advice Review (QAR).
In the letter sent to the Minister on Friday, the JAWG indicated that it does not want to see the QAR forgotten and asked for a number of quick wins while the government deliberates on some of the more complex recommendations of the review.
“The JAWG believes that the Quality of Advice Review provides a series of carefully considered recommendations that taken together, represent a holistic package of reform that will protect consumers and make advice safer, more accessible, and more affordable,” it said.
“However, we also understand that to implement all of the recommendations as a holistic package may take significant time. In the interim, many Australians will continue to be denied access to the financial advice they need, or worse, may seek or otherwise receive advice from other unqualified channels to their financial detriment.”
The JAWG said that it supports the review’s recommendations being implemented in stages rather than as a holistic package. According to the working group, the following recommendations can be implemented in the “immediate short term”:
1. Reforms to documentary requirements
2. Best interests duty
3. Design and distribution reporting obligations
4. Deduction of fees and client directed payments
5. Conflicted remuneration
“These short-term reforms have the collective potential to reduce the cost of advice, making advice more scalable and more accessible,” the JAWG said.
Meanwhile, the JAWG stated that it believes that a number of recommendations will require a longer timeframe to implement, including:
1. Definitions
2. Good advice
3. Design and distribution obligations
“The JAWG looks forward to collaborating with the government on implementing much needed change and collectively working towards our common goal of making quality financial advice accessible and affordable for more Australians,” it concluded.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
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