How Govt has already created a policy delivery logjam
While financial advisers fret about the continuing delay in confirming the experienced pathway, an examination of the Treasury consultation processes reveals a large raft of other Government policy measures yet to be finalised.
With Treasury now being tasked with running a further round of consultations around the final report of the Quality of Advice Review (QAR) the Treasury consultation web site reveals just how many consultations have been held and about which, up to now, there have been no further announcements.
- Amongst the consultations which have been held but have so far led to nothing are:
- Financial adviser professional standards
- Improving Corporations and Financial Services Law
- Financial Services Compensation Scheme of Last Resort
- ASIC Industry Funding Model Review
Those are the consultation which have specific impacts for financial advisers in terms of their costs, while superannuation funds are having to deal with their own list of unfinished consultations including:
- Financial Accountability Regime
- Superannuation Performance Test Treatment of Faith-based Products – regulations
- Review of Your Future, Your Super Measure
In the period immediately following the Assistant Treasurer and Minister for Financial Services, Stephen Jones, making the final report of the QAR public, the Financial Planning Association called for the pursuit of quick wins, particularly around fee disclosure.
That has subsequently been followed by the majority of the financial planning and accounting bodies supporting early wins via the so-called Joint Associations Working Group (JAWG).
The joint associations made clear they believed the time to act on the QAR recommendations was now, noting that “retaining the status quo will only increase the advice gap”
Financial advisers have told Financial Newswire they are concerned that, despite having promised the experienced pathway, the prolonged delay in announcing its implementation suggests he, and the Government, have gone cold on the issue.
On the ASIC Industry Funding Model and Compensation Scheme of Last Resort issues, the Government has scope to make announcements in the context of the May Federal Budget.
There is a logjam because Stephen Jones, the Minister for Doing Nothing, has done nothing. He is lazy or incompetent, or both.
With Michelle Rowland looking like she’ll need to be removed, it’s an opportunity for a broader ministerial reshuffle to get rid of non performers like Jones.
Let’s review the QAR before doing anything……alright here we go:
– the QAR recommends Industry Super Funds can provide Sales / Advice via uneducated, unqualified, unlicensed & unregulated call centre jockeys and bundle these costs into HIDDEN COMMISSIONS that All members pay when 90% get no service for it.
– But Advisers with 20, 30 & 40 years experience, DFP & CPD educated = older qualifications, licensed and very very very heavy regulated. Plus have to provide upfront and ongoing Fee Disclosure only paid for via the person getting the Advice. Yet they are not allowed to give Advice.
Yep that makes as much sense as most moronic things Govts do.
PS – I’m fully FARSEA educated, qualified, etc.