‘Thoughtful and consultative’: Financial services with high hopes for new minister

Statements of support for Dr Daniel Mulino, who enters the portfolio that was vacated by Stephen Jones’ decision to retire from politics, have flowed from across the financial services sector – along with a clear desire for swift action on outstanding reforms.

On Monday afternoon, Prime Minister Anthony Albanese confirmed that Mulino will serve as the Assistant Treasurer and Financial Services Minister during an announcement in Canberra outlining the reshuffle of the broader ministry.

Speaking on the appointment, the Albanese said Mulino got the portfolio “because he’s terrific and he’ll do a terrific job”, adding that he was “very pleased to get the job”.

“He’s played a role in the Parliament here in economics, I believe the economics team remains strong, led of course by [Treasurer Jim Chalmers] and [Finance Minister Katy Gallagher],” the PM said.

He also noted Mulino’s PhD from Yale as strong evidence of his suitability for the position.

FAAA chief executive Sarah Abood said the association welcomed the “opportunity to work with him on issues such as the Delivering Better Financial Outcomes reforms, and fixing the Compensation Scheme of Last Resort”.

“These are priorities that our members are keen to see addressed quickly by the federal government,” Abood said.

“It is critical that we build a healthy and sustainable financial advice community in Australia to help more Australians achieve financial wellbeing and security.”

Similarly, FSC CEO Blake Briggs said Mulino’s experience as chair of the House standing committee on economics means he has a “good understanding of the significant economic contribution financial services industry makes to the Australian economy, as well as a balanced view on the opportunities and challenges the sector faces”.

“Dr Mulino is recognised as a thoughtful and consultative member of parliament and has brought this approach to his policy development since first being elected in 2019,” Briggs added.

“Dr Mulino commences in the role with a range of important reforms underway, and has the opportunity to complete those processes with broad industry support.

“The FSC supports the Assistant Treasurer prioritising the Government’s landmark financial advice reforms, which have the potential to significantly expand access to financial advice for Australians at scale and reduce costs for the financial advice profession.”

AIOFP executive director Peter Johnston told ifa he was “very pleased” with the appointment.

“Holding a master’s and PhD in economics, a law degree and from the right of the ALP he has the perfect ingredients to further the development of our profession for the benefit of all stakeholders,” he said.

WT Financial Group CEO Keith Cullen was also bullish on Mulino’s economic background playing a key role in advice reforms.

“Dr Mulino’s appointment brings a valuable blend of political experience and rigorous economic insight to the portfolio — his expertise in the fiscal impacts of an ageing population means he has a strong grasp the challenges facing Australians’ long-term financial security," Cullen said.

“We look forward to collaborating with him on critical reforms, in particular in accelerating the adviser education reforms promised by his predecessor, to enable the profession to rebuild practitioner numbers to enable the delivery of more affordable, high-quality advice to the households that need it most.”

‘Constructive relationship’ vital for industry goals

While the SMSF Association has been vocal in its disapproval of how the government’s proposed $3 million super tax has been constructed, chief executive Peter Burgess said the association is “confident that the government appreciates the importance of the SMSF sector to the economy as investors and, in many cases, as self-reliant retirees”.

“We’re looking forward to a constructive relationship with the new minister and working with him in a positive vein to address issues that are germane to our vibrant self-managed super fund community,” Burgess said.

“On issues such as legacy pensions we achieved meaningful reform during the last Parliament, and look forward to building on the relationship established over the past three years.”

CALI’s Christine Cupitt said Mulino had a “clear track record of improving outcomes in the insurance industry”.

“He understands the protection needs of all Australians and the importance of access to a strong financial safety net,” she said.

“We welcome his appointment and look forward to working with the Government to progress its pre-election commitment to implement the remaining reforms in the Delivering Better Financial Outcomes package.”

The Super Members Council expanded its congratulations beyond just Mulino to include the reappointments of Treasurer Dr Jim Chalmers and Finance Minister Katy Gallagher, with CEO Misha Schubert keen to work with the economic ministers.

“A clear message from the recent election is that Australia must always strengthen and not weaken our world class super system – it is a key source of financial security for all Australians,” Schubert said.

“We will continue to work across the full breadth of the Parliament to advance a positive policy agenda to make Australia’s world-envied super system even stronger for millions of everyday Australians.”

ASFA also said it looked forward to a “fruitful working relationship” with Mulino, with CEO Mary Delahunty particularly noting the need to provide greater access to financial advice.

“We know a nation of people who are well-informed about their retirement and have options to get guidance on areas they are unsure of will empower individuals and lead to better outcomes,” Delahunty said.

She added: “Superannuation is working well and Australians know it – they're seeing the outcomes of a successful system which is paying dividends for better retirement outcomes.

“Protecting people’s super, getting it paid on time, and giving people the guidance they need in retirement will take this world-leading system and make it even better.

“We look forward to working with Minister Mulino and the re-elected government to make these changes happen.”

AMP chief executive Alexis George said working with the new minister to get reforms across the line is vital for Australians that are struggling to “navigate an overly complex retirement system”.

“We look forward to working with the new minister to continue to implement targeted and well-considered reform – particularly by improving financial literacy and access to advice, simplifying the retirement system, and encouraging innovation in retirement products and services,” George said.