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Govt and Jones ‘lazy’ on CSLR legislation

Mike Taylor16 May 2024
Three figures pull one figure on block

A senior financial planning licensee has laid bare her views on the funding arrangements for the Compensation Scheme of Last Resort describing them as unconscionable.

Less than a week after licensee heads at Financial Newswire’s Advice, Wealth and Super Conference expressed their abiding anger at the CSLR funding methodology, Clime Investment Management chief executive, Annick Donat has taken to social media to state: “The decision by the government to penalise every adviser for the inadequacy of conduct from Dixon Advisory and others is unconscionable”.

Clime Investment Management is the parent company for financial planning firm, Madison.

At the Advice, Wealth and Super conference, Infocus Wealth Management managing director, Darren Steinhardt expressed his continuing anger at the cost of the CSLR to the advice industry alongside other regulatory funding obligations.

As well, the Financial Advice Association of Australia (FAAA) expressed its disappointment that the Budget had not addressed the cost of regulation to the advice profession.

For her part, Donat told Financial Newswire that it was time for people to gain a greater understanding of where their money was being invested and to accept some responsibility.

“The Corporations Act already defines obligations between an adviser and client. The risk regime includes PI insurance & ASIC levies,” Donat said.

“CSLR is lazy legislation by [Financial Services Minister] Stephen Jones and the government. The expense to advisers will flow on to clients and once again make advice inaccessible,” she said.

“I am not an adviser but I am married to one. He has spent 34 years building a business which has helped so many Australians. To add any more cost to his (& the advisers in his business) is disrespectful.”

“So how do we respond? I don’t have a solution but I believe if every adviser explained to their clients the CSLR legislation, the proposed levy (which will increase) and the ASIC levy and PI and what this means to the cost of advice, I have no doubt the clients would be disgusted,” Donat said.

“It’s akin to asking Telstra to pay for Optus’ data breach, or (insert credit provider) to pay for Latitude’s breach…or asking your neighbour to pay extra insurance premiums in case your house is robbed. It’s ridiculous.”

“Speak to your clients, get them to voice their concerns & perhaps together we can stop the stupidity.”

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Do Not Pay Levies
13 days ago

Advisers must NOT PAY LEVIES FOR ASIC & CSLR.
Way beyond enough Govt Persecution.

Anonymous
13 days ago

You say this as if we have a choice when we are held to ransom.

Last edited 13 days ago by Anonymous
Do Not Pay Levies
13 days ago
Reply to  Anonymous

Given nothing else has worked.
The nuclear option must be tried.
Let’s protest on mass and let Canberra try to shut the whole Real Advice Profession down.
What else will work ?

Weird
12 days ago

You start and let us know how that works out for you

Ben Dover
12 days ago
Reply to  Weird

That’s the thing, single attack will obviously fail.
If EVERY ADVISER REVOLTS ON MASS, then let’s see what ASIC and Canberra do ?

Or just keep getting bent over and paying seems your preference.

Definitely unconscionable or worse
13 days ago

It’s part of their strategy to eliminate real financial advisers by restricting what we can earn and driving our costs up so that our businesses are unviable. Their objective is to establish a monopoly on financial advice through the new “Qualified Advisers” who will have no qualifications and work for industry super funds offering conflicted advice that is funded by a charge to every member whether they receive advice or not. It’s unbelievable that this is allowed to happen and the mainstream media is silent. It also speaks volumes about the type of people who now control the majority of the nation’s superannuation savings when they have no qualms about developing such a devios and unethical strategy of annihilation.

Nuffyland
13 days ago

We will tell our clients, at the same time we explain our fees are increasing. We may have poor representation from our professional bodies, but politicians are foolish is they ignore the influence we have at the micro level. Make no mistake, we had a big impact at the last election and Labor had a chance to keep a lot of those votes, but they have squandered the opportunity.

Wildcat
13 days ago

Your headline is wrong. Jones is not Lazy, he’s incompetent.

Still nothing on QAR.

Talk about fees for no service. Jones’ salary should be suspended until we have some regulatory relief.

Annick was close to being correct, you do pay for the robbery. Just look at the increase in home insurance to pay for the floods where people bought in cheaper areas.

CLSR is unconscionable, here Annick is bang on.

Anon
13 days ago
Reply to  Wildcat

I’m not sure Jones is lazy or incompetent. However he does seem to be devious, conflicted, prejudiced, and immoral.

Edward
13 days ago
Reply to  Anon

He’s made comments about being motivated by his early days in parliament where he saw people lose money to some sort of financial scandal and seems to still directly blame advisers for whatever that was. He is clearly conflicted but also doesn’t understand the industry he’s in charge of reforming.

He can’t see the difference between advice vs product and seems to push this idea that any product failure is the fault of advisers.

The way the Govt and regulator is moving to blame advisers for product failures makes me think a return to % based fees is the only way forward to manage the risk to an adviser’s business. If we are to blame for things out of our control our fees have to be intrinsically linked to the risk we take on at higher balances.

Frank
13 days ago

Glad to read some stronger wording being used here. It’s an absolute joke.

Jones out, Labor out.

Researcher
13 days ago

Jones and the government aren’t lazy, they are working very hard to screw over advisers anyway they can, while making sure all their union funds mates wishes are fulfilled.

Last edited 13 days ago by Researcher
Frank
13 days ago
Reply to  Researcher

The Shadow Treasurer made some interesting comments regarding this in a podcast as to who was benefiting from changes made thus far…

Frydenberg was a disaster
13 days ago
Reply to  Frank

Given the ALP, Canberra Bureaucrats & Industry Super are all best buddies and totally Regulatory Capture Corrupted together.
Having Frydenberg Kill Real Advisers for 9 years was next level disaster.
And the LNP may have learnt not to go against us.
But the LNP have not shown anywhere near enough support to Real Advisers and the SMSF Sector.

If we weren’t sure and gave the ALP / Jones a chance at last election as we were so sick of Frydenberg / LNP.
We know and expect the ALP, Canberra Bureaucrats & Industry Super to continue to KILL REAL ADVISERS.
How the LNP cant see they need Real Advisers on side and the SMSF Industry, god only knows.

Out of AMP!!!
13 days ago
Reply to  Frank

which podcast? i’d be interested to listen to that one

Frank
13 days ago
Reply to  Out of AMP!!!
Last edited 13 days ago by Frank