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<\/a>He says the Government will progress the implementation of the 14 recommendations through three streams of work, with the first aiming to streamline the process of giving advice through current channels.<\/p>\n
Stream One<\/strong><\/p>\n According to the Minister’s statement, his Government will:<\/p>\n Jones’ statement that the Government will clarify the rules around conflicted remuneration and improve transparency where advisers receive commissions on products appeared to act as an implicit confirmation the Government will adopt QoA Review recommendation 13.7, which recommended the retention of risk commissions. This was confirmed in a later release from Treasury, which provided more details around the adoption of the 14 recommendations (click here<\/a> for the more detailed release).<\/p>\n Stream Two<\/strong><\/p>\n Jones says the second stream of work focuses on what he refers to as the most significant burning deck in the financial advice space, namely retirement incomes.<\/p>\n He says superannuation funds must play an \u201c\u2026expanded and more effective role that serves the needs of their members. In fact, Government has already told them they need to do more.\u201d<\/p>\n The Government will adopt the review\u2019s recommendation for superannuation funds to expand their provision of advice<\/p><\/blockquote>\n The Government will adopt the review\u2019s recommendation for superannuation funds to expand their provision of advice and will\u00a0 also provide legal certainty for funds on how to collectively charge for advice.<\/p>\n Jones says super funds are well-suited to safely meeting the needs of their members. They are already governed by strong obligations to act in the best financial interests of members and act for the sole purpose of providing retirement benefits to members.<\/p>\n And further \u201c\u2026as a Government we have taken steps to strengthen super disclosures such as requiring super funds to report to ASIC in the same way as publicly listed corporations.\u201d<\/p>\n The remaining recommendations form the model that it will use as a starting point.<\/p>\n Outstanding Questions<\/strong><\/p>\n But, he says, there are some outstanding questions.<\/p>\n Jones says Government is\u00a0 \u201c..open to tailoring that model as necessary based on feedback from industry and Treasury\u2019s advice to make sure it leads to meaningful outcomes for members.”<\/p>\n In the coming weeks, Treasury will work with industry to finalise the details for how these recommendations can be effectively implemented.<\/p>\n Stream Three<\/strong><\/p>\n Jones says the final stream will examine the role for other institutions \u2013 banks and insurers \u2013 in providing more information and advice.<\/p>\n …in terms of priority, I believe it is more urgent that we fix the problems for financial advisers…<\/p><\/blockquote>\n But, he says \u201c\u2026in terms of priority, I believe it is more urgent that we fix the problems for financial advisers. And help the five million Australians at, or approaching retirement, get access to more retirement income advice.\u201d<\/p>\n \u201cI\u2019m just not compelled that the same urgency exists in these other spaces. There is also a difference between the obligations that cover these institutions and superannuation funds.<\/p>\n “And so, I\u2019m not compelled that the model that has been proposed in the review is fit-for-purpose for these other sectors as is, even where there is a need.”<\/p>\n He says that as Treasury is working on implementing the recommendation for superannuation funds to provide more advice “…it will explore with industry what would be required to tailor the model for other institutions.\u201d<\/p>\n Sorting Between the Urgent and the Important Jones explained that because of the breadth of the Review his approach “…is to sort between the urgent and the important.”<\/p>\n He says \u201c…not everything is a burning deck. Which is not to say that we ignore the important. But we don\u2019t want to hold up the urgent, while trying to agree on everything else.\u201d<\/p>\n There are also some problems that have a ready made answer while others are tougher nuts to crack.<\/p>\n \u201cAnd so, I think we can move quickly on the former, while working together to solve the latter,” Jones says.<\/p>\n\n
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