In an upcoming episode of The ifa Show podcast, FPA chief executive Dante De Gori said it was “unlikely” much of the legislation stemming from royal commission recommendations could now “ever happen” in time for its proposed start date.
“It’s unlikely that we can see the outstanding legislation to enact some of the royal commission recommendations get through Parliament in the next six months – I can’t see how that can be possible, but it all does depend on how long we are in this health crisis for,” Mr De Gori said.
“I think that’s the right thing to be done in terms of the government’s priority. The royal commission in the present scheme of things is not a priority, and also it will allow our members and the industry more broadly to take a collective breath that we don’t have to consider some of these upcoming pieces of reform just now.”
The comments come following the release of the government’s updated sitting calendar for 2020, with both houses of Parliament to now be suspended from sitting until 11 August as parliamentarians look to reduce the risk of spreading COVID-19 to their constituents.
Mr De Gori said advisers had to be aware that some royal commission legislation that had already passed, including the removal of grandfathered commissions, would still go ahead, although he did not rule out the possibility of relief as part of the government’s general drive to keep small business afloat.
“There is some legislation that has already passed so there are no ifs and buts about that, it’s in, so we need to be mindful it will come into play,” he said.
“We are interested to see if there needs to be some support or flexibility around that considering the situation everyone’s in, but at this point in time that legislation rolls out as per the bill itself and the legislation that is in force.”
However, Mr De Gori said when it came to laws guaranteeing a one-year extension for compliance with the FASEA exam and education standards, advisers could have more confidence that this would still be passed in time for the extension to go through.
“We are still very confident [the extension] will pass the Senate in terms of the exam and education extension but it will be later this year,” he said.
“As soon as there is some ability for us to take a breath following the coronavirus crisis and Parliament starts to resume in some normal capacity, we will be on the front foot in ensuring that does get done.”
The government and others come together as a force to squash us advisors including trails, low balances of $6k, opt-ins and then clients wanting direction and help with super and insurances. The government shouldn’t bite the hands of people who assist in being their best advocates. you ought to put more thought about squeezing our industry out of business. wake up Govt, ASIC. Royal commission was about taking 10 bad examples and you forgot about all the good we have done for clients.
Hopefully the Liberal government will soon learn what’s it’s like to experience extinction. This vindictive government should crash and burn nicely at the next election now they have no friends. Love watching Karma.
The FARCE-IA exam extension had better get passed or else there WILL be a very LARGE armful of advisers calling December THIS year their last month in this once-great industry. I will be one of them . . .
If this is the case then all things FASEA related should also be placed on hold given the debacle it has become with delays, misinformation etc etc..
It’s nice to know they’ll be able to come back to killing off our industry in singular fashion next year rather than letting us be taken down with the herd now.
I wouldn’t bank on the extensions to go through in time. Do the exam this calendar year.
Stuff the FARSEA exam we have actual real work to do managing clients.
And even if it is not passed there is not a hope in hell it will be enforced.
Shouldn’t ASIC and the government be checking with their masters at AMP and the big four banks before they make any decisions???
It ain’t the time to push through reforms. It ain’t the time to remove grandfathering. It ain’t the time to make life difficult for small FP businesses. It just goes to show the bubble that ASIC live in.
We know that and so does every normal business owner and citizen, but we have a cancer-ridden agency called ASIC that is determined to make life and business as hard as possible for financial planners and small business owners.
Agree and a useless industry body in the FPA. I bet Dante will still be taking his $475K salary and giving himself a pay increase just like last year.
Clients looking to access their super under the hardship should be forced to take the funds with commissions first. That will clean up alot of the grandfather issue. Plus they are usually higher costs than newer funds. And the CGT should be a non issue too.
Someone needs to tell AMP that. They are making changes to compliance that are not legislated. Hasn’t stopped them. All this situation does now is punch another hole in the side of the boat of small businesses already sinking. Don’t be fooled by their public stance of “doing everything they can to work with their Advisers through this difficult time”. Be interesting to see if they provide relief to their network or just push their thumb down harder.