QAR response a ‘euphoric day’ for advisers: AIOFP

In an email to the Association of Independently Owned Financial Professionals (AIOFP) member base made available to ifa, executive director Peter Johnston said the government’s Quality of Advice Review (QAR) response was a “huge step in the right direction”.

“Minister Stephen Jones has done exactly what he said he would do with reviewing our industry with yesterday morning’s QAR response meeting at ASFA headquarters in Sydney,” Mr Johnston said.

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“The 10-year education pathway legislation goes to Parliament this week and the minister has revealed a three-step process leading into the next election to undo the nasty pieces of the previous government’s nine-year ‘culling campaign’.”

Minister Jones confirmed the introduction of the experience pathway legislation into Parliament on Wednesday morning.

“Also in this process will be a review of the exam and risk commissions etc, but we just need to be patient,” Mr Johnston added.

“The minister wants to unravel nine years of poor legislation, but it must go through certain channels … hopefully the ‘nagging and grandstanding’ by some will now cease.”

Treasury has also alerted industry bodies that consultations on the implementation of the QAR recommendations are imminent and at least some legislation will proceed this year.

“The minister has indicated the government will progress legislation implementing recommendations it has accepted in the second half of 2023 and early 2024 and will undertake formal consultation on the remaining recommendations prior to delivering its final response on the Delivering Better Financial Outcomes package later in 2023,” a Treasury email said.

In a closed-door meeting on Tuesday morning, Financial Services Minister Stephen Jones unveiled the government’s anticipated response to the Quality of Advice Review (QAR) to a small audience of superannuation fund CEOs and senior industry executives.

Mr Jones revealed the government will accept 14 of the 22 recommendations made by QAR lead Michelle Levy, with the legislative response divided into three streams. Following its release on Tuesday morning, industry groups have largely supported the government’s response.

“The government is right to prioritise its ‘stream one’ reforms, which will lower the cost of providing financial advice and improve consumers’ experience when receiving advice,” said Financial Services Council chief executive Blake Briggs.

An earlier version of this story said that the AIOFP was the only advice association to attend the government’s QAR response meeting. Other associations, including the FAAA, attended the meeting via livestream.