Jones talks of ‘squaring’ super advice delivery
The Federal Government has signalled that there is absolutely no certainty about it adopting the type of “good advice” financial planning framework recommended in the final report of the Quality of Advice Review.
However, it has made clearer that it continues to see merit in removing the legislative and regulatory obstacles to superannuation funds being a primary conduit for the delivery of financial advice.
The Assistant Treasurer and Minister for Financial Services, Stephen Jones sent a clear message last week that the Government is not going to be locked in to the QAR and may in fact look at other options.
Participating in a webinar conducted by Industry Super Australia (ISA), Jones was asked whether the Government what the Government was going to do with respect to the QAR recommending good advice instead of the current best interest duty.
Jones made clear that the Government was not going to be in the business of attaching itself to what represented on of the core recommendations of the QAR final report.
“I’m not sure whether we adopt that framework, or whether we look at other propositions,” the minister said. “But what I know is this – there are 5 million Australians today who are either at or approaching retirement, they’ve got more money in their superannuation accounts than ever before in their lives. I think it’s a courageous person who would say they either know what to do with it.”
“There are 16,000 licensed financial advisors in the country. So, the numbers don’t square. So, we’ve got to find a way to deliver information and advice to members who are approaching retirement.”
“Whether you like it or not one of the first phone numbers that they call is their superannuation fund,” he said.
“At the moment, [the] law that has partly been passed by the previous Parliament, supported by me, puts an obligation on funds to put in place a strategy for their members for their retirement phase.”
“And at the very same moment, we put in all of these obstacles, which make it almost impossible for the funds to do anything about that. So, I’m keen on squaring that off,” Jones said.
We could see the writing on the wall months ago and here it is. More vertical integration, more conflicted selling, more backpacker and call centre advice, NO RELIEF AT ALL from the absolute debacle of a legislative and regulatory framework real planners are forced to endure. We can see where your priorities are Mr Jones, with your union buddies. Just be warned the banks will be back in in all their glory right behind the them.
How about granting some relief to the real financial planners so they service way more clients rather than bury them in BS red tape.
The only motivation you appear to offer me is move all my clients into a retail version of the managed account I already run, close down my planning business, hand in my license and offer phone support as a super fund!! Yes I know it’s not soooo easy but it is doable. Why would I put up with all this compliance burden when I can restructure it away?
It has never been a level playing field and you Mr Jones are only steepening it. Let us help these people you claim to care so much about. Or is really your union buddy friends you care so much about perhaps, hence the deaf ear you seem to have developed?
Your comment of “just be warned the banks will be back in” implies that the Banks are somehow worse than Super funds in the poor advice or, mis-selling department. Having worked in a not for profit Super Fund as an adviser I can tell you you’re in for a rude surprise. Super funds are going to make the banks look like work experience students when if comes to selling.
Labor ‘squaring away’ more $uper acce$$ for their Union masters – no surprise!
“The Assistant Treasurer and Minister for Financial Services, Stephen Jones sent a clear message last week that the Government is not going to be locked in to the QAR and may in fact look at other options”
Who didn’t see this coming. Screwed again! And as one of the people waiting on education clarification. I think I have my Answer. And if I’m honest I always expected it. In some ways a relieve, I can plan to get out.
Yep… same thoughts here…
What Universe is this clown living in ? Allowing large super funds to recruit uneducated individuals that were selling pyramid schemes last week and a week later after going through some inhouse training, end up on a phone line, that are not required to follow any code of conduct, giving special carve outs, to provide advice on the back of a beer coaster, all whilst being pressured to sell, sell, sell by some untouchable CEO paying off the Government is not……” squaring things off”.
“Squaring things off” would be removing the multiple layers of bad legislation, the 22 something layers of Government bureaucracy for all parties equally.
Another clown with the same circus.