Mulino’s challenge – balance advice needs and wants
Despite this week’s change at the top of Federal Treasury bureaucracy, the financial advice profession can expect continuity in its dealing with the department and therefore the advice provided to the new Assistant Treasurer and Minister for Financial Services, Daniel Mulino.
The Treasury Secretary who has overseen much of the policy development and legislative change to financial services over the past five years, Steven Kennedy, has been promoted to head up the Department of Prime Minister and Cabinet but his successor, Jenny Wilkinson, represents a continuum rather than change.
Thus, as the financial advice lobby seeks to deal with the impending outcome of Treasury’s implementation review of the Compensation Scheme of Last Resort (CSLR) and delivery of the third tranche of the Delivering Better Financial Outcomes (DBFO) legislation it should expect no better than marginal accommodations of its concerns.
While Mulino undoubtedly is already intimately acquainted with his new portfolio it takes time to recruit appropriately experienced ministerial staffers meaning that, for now, he will remain highly reliant on the work of his predecessor, Stehen Jones, and the continuity offered by Treasury personnel.
Mulino has already completed the customary round of meetings with industry lobby groups and listened to what they see as their priorities and, like some of his predecessors is likely to look to deliver them what might amount to some easy wins.
However, on the big issues such as fixing the funding arrangements underpinning the CSLR there are no quick wins in the absence of actually roping in managed investment schemes (MISs).
Where the DBFO legislation is concerned, the most important win for the new minister will be in achieving the construction of appropriate regulatory guard rails around the new class of financial adviser and advice delivered via superannuation funds.
If Mulino can find a balance between the needs of the superannuation funds and the protective wants of financial advisers, he will have achieved a good deal more than many of his predecessors.
So a continuum from those in treasury responsible for delivering nothing, got it.