The CEO of the Financial Advice Association Australia (FAAA) noted a positive change in the minister’s attitude during their latest meeting on the Compensation Scheme of Last Resort (CSLR), indicating a greater willingness to understand the industry’s concerns.
“In the last minute we had with him [Minister for Financial Services], there was absolutely a recognition that there is a problem that needs to be solved and that was a shift from previous discussions where it had been very much, ‘Well this is the legislation playing out as legislated’,” Sarah Abood said.
“So that was a big turnaround … That was very positive.”
In addition to meeting with Stephen Jones, the FAAA has also engaged with Treasury and is scheduled for another discussion soon.
“It’s definitely looking like genuine engagement, genuine willingness to hear from us on what we think the problems are and potential solutions,” Abood said.
Last week, it was revealed that the economics references committee will scrutinise the collapse of Dixon Advisory and its impact on the CSLR after a motion moved in the Senate by Senator Pauline Hanson secured cross-Parliament support.
And on Friday, the Senate announced the finalised terms of reference for the inquiry, which is scheduled to report by the last sitting day of March 2025.
Considering these developments and the minister’s apparent increased interest in finding a solution, Abood and her colleague Phil Anderson are optimistic about the prospect of a positive outcome.
“There will be a lot more work to put our case forward, highlighting the issues with what Dixon Advisory did and the design and implementation of the CSLR, however, today is a great start,” Anderson, who is the body’s general manager of policy, advocacy and standards, shared on his LinkedIn when the inquiry was first announced.
Last week, Luke Howarth, shadow assistant treasurer and shadow minister for financial services, told ifa that the need for this inquiry “highlights the Albanese government’s poor implementation and maladministration of their Compensation Scheme of Last Resort”.
“The Coalition supports a fairer and more sustainable Compensation Scheme of Last Resort,” Howarth said.
“The proposed inquiry should focus on how to achieve this aim, how the errors in the government’s design of the scheme can be corrected, and how the scheme’s costs, which are ultimately passed on to consumers, can be brought down.
“Financial planners and advisers are hurting at a time when they should be focused on rebuilding their industry and helping Australians who are currently under-advised and under-insured.”
Minister doesn’t get the basic concerns. Instead of cutting red tape they applied more levies to small business. Why in the world should any adviser pay for another instituions stuff ups. Hold the Directors accountable. Get them to sell their homes, dig into the parent companies earnings and take them to court. This should be ASIC’s job.
Where is the ASIC and Dixon paper’s of the wind up – what happened, who was involved, why is it supressed?
Oh my, we are in an election mode.
There is nothing so despicable is what your politician who is up for re-election within a short period
I have absolutely no hope whatsoever for Mr Jones while he is notionally the head of a ministerial office fully staffed by Treasury policy wonks.
He may not be heavy but he sure as hell isn’t our friend
Jones is a muppet controlled by the Industry Super Funds agenda and he is only trying to save face because he knows the likely outcome of the enquiry…
It does not matter what this bloke says because his actions to date have been deplorable for all advisers so would prefer the FAAA stops pandering to him and just calls him out.
Jones was going to fix the hot mess but he has made it significantly worse. Their agenda is crystal clear and it is the opposite of what they say. Nothing will change. The inquiry will be used to bring up losses people have suffered due to fund manager failures and financial advisers will be blamed. They will use this to justify keeping the CSLR in its current form. This will bankrupt the financial advice profession which is their true agenda. Clear the decks for the new Industry Super Fund Qualified Advisers.
Politics playing out. Difficult to trust a Politian especially coming up to an election year – promise hte world and deliver very little if anything.
Call me a sceptic.
Given the polls, Jones is starting to realise he needs our votes.
Funny how Jones’ attitude has become more ” positive ” in the wake of pressure from Angus Taylor and Luke Howarth and with the prospect of a forthcoming election brewing ??
Its an absolute farce as he was a brazen and so called “positive” PRIOR to the last election and then failed miserably to live up to his promises and now he can feel the heat being tuned up, he now wants to listen and be more engaged in the process.
If this doesn’t show exaactly how the political cycle and the retention of political power really works, then nothing does.
Pathetic.
Like before the last election, he si simply trying to secure votes with this “change”. Remmeber his broken promises! Leopards do not change their spots and his party is anti business and anti economic efficiency and must go.
So, do we rejoice in the fact that he might FINALLY be getting it or lament that it’s taken so long?
I smell an election