Financial Services Minister Stephen Jones responds to questions from advisers at joint associations event series

Stephen Jones

Advisers heard directly from the Assistant Treasurer and Minister for Financial Services Stephen Jones, and had the opportunity to ask questions of the minister, at a series of open industry events in Queensland co-hosted by six associations from the Joint Associations Working Group (JAWG).

Following the earlier event in Hobart on 27 June, this latest series of events was held across three days in Brisbane on 11 July, Townsville on 12 July, and Cairns on 13 July.

Coming together to host the events were the CAANZ, CPA, FAAA, FSC, IPA and SIAA.

Moderated by representatives from the partner associations, Minister Jones spoke about the government’s response to the Quality of Advice Review and took questions from financial advisers and other financial services participants from the floor.

QAR consultation

Regarding the Government’s consultation on its response to the recommendations of the Quality of Advice Review, attendees were keen to understand how quickly the Stream 1 measures to reduce red tape could take effect.

FAAA CEO, Sarah Abood says: “This first package of reforms is critical in helping advisers deliver more great advice for Australian consumers. 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.

“Of the Stream 1 measures, most questions were asked about the Statement of Advice proposals, and in particular how the industry could gain sufficient confidence in delivering more fit-for-purpose advice records for consumers.

“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,” Ms Abood says.

“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.

“The minister said that he sees transition to retirement advice as an area of high unmet need and a priority to solve. He 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.”

Education and increasing adviser numbers

Ms Abood says many questions 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.

“Members spoke to 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.”

Better access to data

Attendees also asked questions around allowing better access for advisers through the Australian Taxation Office (ATO) portal and via Centrelink, to enable them to serve clients more efficiently.

“Of course, facilitating this access would also reduce costs for government,” says Ms Abood.

“Minister Jones has carriage of the Consumer Data Right and is known as the ‘digital minister’ for having moved to paperless in his own office. So he definitely has a strong understanding of the need in this area, and the potential benefits in efficiency and lower costs that could be achieved.

“We have also separately spoken about the potential for efficiencies in areas such as Anti-Money Laundering and Counter-Terrorism Finance Act (AML/CTF) reporting obligations, in moving to digital identity verification. We are hearing strong support for digital solutions from the government, and we will shortly be asking members for help in building the case to go to the next stage on these priority areas.”

ASIC levy

Finally, many attendees raised questions about the fairness of the recently-announced steep increase in the ASIC levy, now the freeze has ended.

“It just 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,” Ms Abood says.

“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.

“Overall, attendees have told us they’ve found these events to be extremely valuable as an opportunity to engage directly with the minister. We are very grateful for the considerable time he has given at these events, being willing to take questions directly from the floor and have a full, frank and engaging discussion about the issues that matter most in our profession.”