Speaking on a webcast hosted by the Financial Services Council (FSC) last week, Financial Services Minister Stephen Jones revealed that he would formulate the government’s response to the Quality of Advice Review (QAR) by early June.
Mr Jones confirmed that had it not been for the budget, the government’s assessment of the review would have been publicised earlier.
“We will have a cabinet consideration in a few weeks’ time. I hope to be in a position in late May or early June,” the minister said.
He also predicted that the review could be implemented in several stages.
Namely, according to the minister, under the initial stage, the government would implement those more immediate recommendations, followed by the more controversial elements and then it would tackle the most difficult areas.
To coincide with this announcement, Adviser Ratings has revealed the results of its latest poll, which asked advisers, ‘Do you think the Quality of Advice Review core recommendations should be implemented now and refined later?’
The results showed that as many as 74 per cent of advisers said they were in favour, while 26 per cent voted “no”.
Responding to Mr Jones’ announcement, the QAR lead, Michelle Levy, told ifa she did not expect it and was “very pleased”.
“As to a staged implementation — without seeing it, it is hard to know — but if it [is] the easiest way to ultimately adopt the whole package, then I would have no objection,” Ms Levy said.
Ms Levy earlier penned a letter to Mr Jones, published on ifa, in which she encouraged the minister and the government to adopt the recommendations in her report.
She said at the time that “if they need some refinement, it is better that that happens afterwards”.
“If there is some poor conduct (and there is poor conduct now, too), ASIC has all the powers and tools it needs to put a quick stop to it. In the meantime, the recommendations will, if adopted, achieve their purpose and the purpose of the review — to help more people get good financial advice as and when they need it”.
