Financial Services Minister Stephen Jones has told a series of financial adviser events his goal is that the draft legislation around the first stream of work relating to the QoA Review recommendations be available this calendar year.
The FAAA says that at the series of industry events in Queensland, hosted by six associations from the Joint Associations Working Group, Jones spoke about the Government’s response to the recommendations of the QoA Review and took questions from financial advisers (also see: QoA Review Decisions).
Regarding the QoA Review, attendees were keen to understand how quickly the Stream 1 measures to reduce red tape could take effect.
FAAA CEO, Sarah Abood says on this first package of reforms “…the Government and Treasury are moving swiftly to implement these measures, and the minister clearly stated his goal for draft legislation to be available this calendar year.”
She says this first package “…is critical in helping advisers deliver more great advice for Australian consumers.”
Abood adds that of the Stream 1 measures, most questions were asked about the SoA proposals, and in particular how the industry could gain sufficient confidence in delivering more fit-for-purpose advice records for consumers.
…the Minister and his team are very aware of the need to involve all stakeholders early…
“The Minister also said he wants to ensure that the legislation is not too prescriptive. He and his team are very aware of the need to involve all stakeholders early, including licensees and the regulator, in designing a solution that will achieve the goals.”
Many questions were also asked about the Stream 2 reforms and how the Government envisages that superannuation funds will deliver a potentially broader advice offering to members via non-relevant providers, she notes.
“The minister said that he sees transition to retirement advice as an area of high unmet need and a priority to solve.”
She added that Jones has heard “…loud and clear some of the concerns and need for safeguards around the complexity of this advice, the qualifications of those delivering it and the impacts of collective charging. He has said he is open to views on these matters and they will be front and centre in the next stage of consultation on this stream of reforms.”
On the ASIC levy
Attendees also raised questions with the Minister about the fairness of the recently-announced steep increase in the ASIC levy, now the freeze has ended.
Abood says it doesn’t make sense “…to see the per-adviser ASIC levy almost tripling, at a time when the number of advisers has almost halved, and we are trying to reduce the cost of advice for consumers.”
…the Minister has now heard the concerns very clearly directly from those most affected…
She adds that this issue was proactively raised by attendees at every event “…and the Minister has now heard the concerns very clearly directly from those most affected. We continue to engage intensively on this matter, as we believe that even under the current Industry Funding Model (which we know has flaws), there could be ASIC costs that have been incorrectly attributed to our sector.”
Education and Increasing Adviser Numbers
Abood says many questions also related to the urgency of rebuilding adviser numbers and the severe skill shortage in the profession.
“Discussion also touched on the experience pathway legislation now in Parliament, which the minister is hopeful will assist. There were questions around education requirements more broadly, in the context of specialisations, and recognition of the differences between advisers focused in areas such as personal risk or stockbroking, versus those providing holistic/comprehensive advice.”
She says attendees spoke about their own different pathways into the profession and the need for support for different types and stages of new entrant.
“The Government will commence another piece of work soon which will address these matters in more detail.”
This latest series of events, co-hosted by the CAANZ, CPA, FAAA, FSC, IPA and SIAA, was held across three days in Brisbane, Townsville and Cairns between July 11 – 13. It followed an earlier event in Hobart in June.
