Speaking at the AFR Super and Wealth Summit via video on Tuesday morning, Minister for Financial Services Stephen Jones once again insisted that the first stream of the Quality of Advice Review (QAR) draft legislation is close at hand.
“We’ve charted three chunks to work because everyone in the industry is very aware of this is just a pragmatic way of approaching a very large problem,” Mr Jones said.
“The first chunk of work, we hope to be out with some draft [legislation] in the very, very, very near future so that people will be able to consult on the technical detail of what we’ve decided from a policy point of view to do.”
This represents a delay from the minister’s previous comments.
In an exclusive conversation with ifa earlier this month, Mr Jones said draft legislation on the first stream of the government’s QAR response should be made public by the end of October.
“I hope to have some draft legislation within the month so that we can pore over that, just to make sure it’s technically correct, and get it into Parliament first up next year,” Mr Jones told ifa.
He explained that the government has stress tested “a bunch” of the recommendations made under stream one – recommendations he has referred to as “red tape reduction” focused.
The second tranche, which centres on retirement income, is the “next cab off the rank”, the minister disclosed to ifa.
“We’re doing all of these things in parallel, but it’s as simple as this. You got a tube about that fat, and if you try to squeeze everything through it at once, nothing will pass through. So, that’s the tube of Parliament and the policymaking process. So, I’ve been very pragmatic,” Mr Jones said.
“What can we get through? What’s ready to go? What’s not ready to go? And let’s try and move these things through in a logical fashion.”
At the AFR summit on Tuesday, Mr Jones stressed that while there has been no draft legislation released, the government has been “engaged in deep consultation around the scope, the training and competency, and charging arrangements for advice to be provided” within superannuation funds.
“We’re well advanced in our project and government has got some policy decisions to make in the very near future as well, with a view to having some concrete stuff for funds, consumers and others to pore over in technical detail and legislative detail in the first quarter of next year.
“So, we want to push this along really quickly, because you can’t say we’ve got a 5-million-person problem and then be dragging your feet on a big part of the solution to that problem.”
Mr Jones added: “We’ve got in parallel to those two jobs of work, other work going on in the insurance sector, in the banking sector, around other parallel advice work … a hell of a lot of work going on.”
For super funds to fulfill member assistance, innovative software is the obvious solution.
For members to recieve advice that is in their best interest, fixing bad regulation so that consumers can afford to see an independent licensed adviser is the obvious solution.
Only a matter of time before he postpones it until after the next election.
So as Labor delays any reduction in red tape and pushes out the unleashing of Financial Adviser growth potential, it does allow us time to reflect some more. Perhaps someone could enlighten me – how many SOA’s are being produced per Adviser per week at Industry Super?
Nice one, Jonesy. That’ll keep those pesky smart-alec la-de-da Financial Advisers’ hands off our pots of gold. Love the “very, very, very…” bit, too. Not quite as fake a “shortly”. Slaps on the back from all of us, matey.
Jones should self-lodge a breach notice with ASIC. Pay a fine
And next, it will be a teensy weensy bit more.
And after that it will be an itty bitty bit more.
And after that it will be a teeny tiny bit more.
And after that it will be a bee’s apendage more.
And after that it will be…
Grow up, Jones.
… and did he mention which October, there’s one every year…
All the more foolish of me believe anything would change, this is the last straw. After 15 yrs and being fasea qualified before fasea existed, the choking red tape incompetence and taxes from government are enough. Not worth my health. Let my clients get phone advice from an uneducated inexperienced grad from ifs
Death, by 1,000 cuts.
More than likely he is stalling until closer to the next election so that the trade-offs between ISF’s carve outs and IFA’s red tape reductions can be used to buy votes. Since when does a politician deliver on their promises?
And then it will be delayed even further when the legislation is released and, “people will be able to consult on the technical detail of what we’ve decided from a policy point of view.” Then wait for all the compliance experts to come out, CHOICE, academics and licensees, trying to justify their own self-interests, all the while Advisers will likely not have much voice. It wouldn’t surprise me if we end up with fairly benign changes to industry compliance.
Correct, Jonesy has already said Adviser compliance changes won’t be a massive change / limited reduction.
He’s already admitted Advisers will get very little benefit.
Prob right eventhough there shouldnt be, given the speight of rounds of feedback already provided prior toqoar release, the final recs didnt alter from the interim, then more feeback provided and submissions. This is just a case of stringing everyone along and clients and IFA suffering while legislating to increase costs of advice through the levy csolr and funding afca too
What do you call a Politician that doesn’t deliver on their election promises ?
[b]A Politician : – / [/b]
Hilarious – but then again not. I predicted 2 years for anything to happen from the date of release of the QAR. Maybe I should have said 3 years ?
The main legislative changes required is to eliminate SoAs & replace them with simple Customer Advice Records, along with eliminating Annual Fee Renewal Consent Form red tape (that do not exist in any other nation on earth). It’s as simple as that
yeah but he has to make sure it will benefit the super funds before he does anything.
It’s also not what they want to implement. My suggestion is to move countries or change careers because whilst what you are saying is correct it won’t happen in the next decade.
SOA’s will not be eliminated totally. They will be streamlined and be referred to as something else.
Quite possibly called a “financial plan” in future…hopefully something a client will understand…
not delivering when he promised he would, I am shocked,
I would hate to see how long the other solutions that are not the quick wins take to out in place. A governments promise is a bit like asking how long is a piece if string. You will never get a straight answer and they will try and tie you up in rhetoric and broken promises
They will be quicker, because they benefit super funds
Not sure any promises have been made to real real Financial Planners -I believe they said they would make advice more accessible – meaning for Super Funds I thought?
Just none have been delivered. There are 3 ifa webinars with the minister and levy directly. Absolutely shocking
Shocker!!!