Jones warned against expedient ‘easy wins’ approach on QAR

Mike Taylor

Managing Editor/Publisher, Financial Newswire

3 February 2023

The Federal Government has been warned against turning the Quality of Advice Review (QAR) final report recommendations into a political “easy win” exercise.

The 11 financial services organisations making up the Joint Association Working Group (JAWG) have jointly written to the Assistant Treasurer and Minister for Financial Services, Stephen Jones have sought specific action on what they see as the key issues rather than the simply identification of easy wins.

What is more, the JAWG has urged the Government to commit to implementation timeframes that would involve industry consultation on a holistic package of reforms introduced to the Parliament this year.

The letter detailed the outcomes which the JAWG would consider as leading to successful outcomes, stating a Government package “will only succeed if it:

1. Ensures consumers can get scaled advice, that is the advice they want, how they want it, and when they want it, including via digital means.
2. Supports a professional financial advice sector, by increasing the number of financial advisers and financial advice providers, while maintaining a level playing field.
3. Removes regulatory and disclosure requirements not benefiting consumers.
4. Reduces the time and cost to prepare quality financial advice.
5. Establishes a regulatory approach that facilitates the provision of financial advice without uncertainty or shifting goalposts.

“We believe that many of the final recommendations of the Quality of Advice Review are aimed at achieving these objectives. But Australian consumers will be left behind without the adoption of a holistic package of reforms. The reforms must extend beyond easy wins such as streamlining fee disclosure requirements and iron-out obligations like the design and distribution obligations,” the letter said.

The JAWG is made up of the Financial Planning Association, the Association of Financial Advisers, the Boutique Financial Planning Principals Association, Chartered Accountants ANZ. CPA Australia, the Financial Services Council, the Financial Services Institute of Australia, the Institute of Public Accountants, the Licensee Leadership Forum, the SMSF Association, the Stockbrokers and Investments Advisers Association, the Advisers Association and the CFA Societies Australia.