Speaking to ifa, Haydn van Nek, operations manager at Kelly Wealth, said expectations are high regarding the Quality of Advice Review (QAR) and the government’s assessment of the recommendations — an assessment that isn’t expected to see the light of day until next year.
For Mr van Nek, what stood out is reviewer Michelle Levy’s evaluation that current legislation regulating financial advice focuses too much on what advisers have to do, and not enough on what consumers actually want.
“That’s a really prominent point.
“I guess we didn’t need her to say that, we already knew that but it is nice that that’s being noted,” Mr van Nek said.
“One of the things we want to see is reduced cost to serve, which obviously would flow onto more affordable advice for our clients,” he noted.
Other items on Mr van Nek’s wish list include reduced disclosure obligations — specifically in relation to the complexities surrounding the current statements of advice — and disclosures surrounding advice fees.
“We feel like we’re ramming advice fees down our clients’ throats, every time we speak to them; we feel like we have to mention advice fees just to make sure we’re covered,” Mr van Nek said.
“I guess this is a personal opinion of mine, I think there are some differing opinions even inside my firm, but intra-fund advice, I think it should remain, but it needs to be carefully monitored to avoid that conflict and help ensure best interest duty or good advice if that’s what we move to,” he explained.
Earlier this month, Financial Services Minister Stephen Jones said Michelle Levy’s final QAR report would be a part of his Christmas reading list.
“That will be a part of my Christmas reading so that I am in a position early next year to consult with you [advisers] on the reforms that we’re able to put in place as a result of that review,” he added.
Also at the time, Mr Jones noted that while he has received many requests to share his views regarding Ms Levy’s recommendations, he did not wish to “breach my principles”.
“Time and time again, I’ve been asked by members within [the] industry and the product manufacturers to express views on the things that are subject to Michelle’s review, whether it’s about the quality of advice or commission issues, and I’ve been steadfast in the commitment I gave to her and the principle I’ve adopted publicly, and that is I’m not going to pre-empt the outcome,” the Minister said.
To hear more from Mr van Nek, tune into our podcast from 21 December, 5pm.
“Time and time again, I’ve been asked by members within [the] industry and the product
manufacturers to express views on the things that are subject to Michelle’s review, whether it’s about the quality of advice or commission issues, and I’ve been steadfast in the commitment I gave to her and the principle I’ve adopted publicly, and that is I’m not going to pre-empt the outcome,” the Minister said.”
We can only hope you get this right Minister Jones because the futures of so many Australians are depending upon you!