Key policies impacting all financial advisers continue to be examined with submissions still being received by government departments and regulators, despite the July 2 election placing the Federal Government in caretaker mode.
Among the policies still open to input are the changes to education and professional standards with Treasury stating it would extend the time in which industry bodies could make submissions.
Financial Planning Association, Professional Standards and Advocacy Manager, Ben Marshan said while Treasury had entered caretaker mode at the calling of the election, it was asked to leave open the submission process for comments on the second draft of the legislation and had further extended the closing date from mid-May to mid-June.
“We are still going out to members seeking input but are aware that Treasury is not speaking on any matters and is only receiving information at this stage to pass onto the Government after the election”, Marshan said.
“…Treasury is not speaking on any matters and is only receiving information at this stage to pass onto the Government after the election”
Association of Financial Advisers (AFA), General Manager, Policy & Professionalism, Samantha Clarke said the extension had allowed the AFA to pass on the draft legislation to members to seek wider feedback and for the association to contribute to a consensus submission with other industry bodies.
“In addition to contributing to a consensus submission, the AFA will also lodge a submission capturing the additional views of members. In particular, we will be advocating that one of the Standard Setting Body board positions be made available for someone with practical experience as a small business advice practitioner,” Clarke said.
“We are also supportive of ethical literacy being included in the standards and have been working with the St James Ethics Centre and the Banking and Finance Oath organisation along with other consensus parties.”
The Australian Securities and Investments Commission (ASIC) also continued to receive submissions, until May 31, on the regulatory instrument it would use to oversee life insurance advice under the Life Insurance Framework (LIF) after the election was called on May 9, according to Marshan, and that work was continuing on the instrument.
Both Marshan and Clarke said no further news had been received about the LIF legislation after it had stalled in the Senate with Marshan stating that it was likely to return in some form as both parties supported the legislation.
Clarke said further working relating to LIF had been going in with the AFA speaking with the Financial Services Council (FSC) and its insurer members to include a commitment to advisers in the FSC’s pending life insurance Code of Practice.
“We have asked the FSC…to make changes that don’t create incentives that can act against the best interests of consumers…”
“We have asked the FSC and its insurer members to make changes that don’t create incentives that can act against the best interests of consumers and have so far received general support for our views. We would like to see this commitment to advisers and consumers in the first public version of the code and have it expressed in plain language for the benefit of consumers,” Clarke said.
Marshan said the election did not have any impact on the work of the Australian Tax Office (ATO) and the Tax Practitioners Board (TPB) and both were involved in efforts to further engage with financial advisers around tax related issues.
“The ATO is currently seeking the views of financial planners on how it can go forward with them on issues related to financial advice and tax and is looking for some quick wins and better relationships in the intermediary market. Given the recent changes to superannuation caps in the Federal Budget this will continue to be an important area for advisers.
Marshan added that the TPB had recently released four exposure draft codes of professional conduct relating to financial advisers and managing conflicts of interest, correctly applying tax law and ascertaining and acting in the best interests of clients.
