Addressing the Stockbrokers and Financial Advisers Association (SAFAA) 2021 Conference, Labor financial services spokesman Stephen Jones said it would be appropriate for the parliamentary joint committee on corporations and financial services to conduct an inquiry into the standards body, which is due to be scrapped at the end of this year.
He believes that it is “beyond time” the various issues seen with the implementation of the professional standards framework were properly scrutinised.
“I think for all the issues the SAFAA has raised and a bunch of issues other associations have raised, this warrants parliamentary scrutiny,” Mr Jones said.
“There are two parliamentary committees that have been set up to do that and aren’t, so I would suggest you use your resources to ensure that one of the two committees, either the corporations or the economics committee.
“I would suggest the former, as the one that produced the original report on advice misconduct would be the right committee to conduct a review of this. It’s beyond time.”
Mr Jones said the Treasury’s decision to absorb FASEA’s standards-setting powers as of 2022 was proof that the body had not delivered on its mandate to properly implement effective ethical and educational standards for the industry.
“The debacle in the implementation of the standards should be reason enough,” he said.
“The fact the government has had to ditch it and drag it back into Treasury is evidence that there’s plenty to see here and something should be done.”
Meanwhile, also speaking at the SAFAA conference, minister for financial services and superannuation Jane Hume said the reform started with FASEA and was always going to be difficult as it took up a role “no one else wanted to”.
“I’m firmly of the view that while it’s important that the regulatory settings remain responsive, they must make it responsive to the will of the people as expressed through the Parliament and their elected representatives, rather than being in the hands of unelected officials who aren’t accountable to the Australian people,” Ms Hume stated.
“In future, standards will be set by regulation issued by the minister, and subject to parliamentary oversight and potential disallowance.”
The previous regulatory standards also did not consider the costs for businesses or how they would impact the accessibility of advice, Ms Hume admitted.
“Imposing more and more regulation and training requirements on advisers inevitably increases costs and takes time away from their job. And for small businesses, this problem is particularly acute,” Ms Hume said.
“Ninety per cent of financial advisers are sole traders or part of a small business. Now, in the end, there’s no free lunch. We all know that these costs are ultimately borne by the consumer.
“The government is committed to the professionalisation of the advice industry. But we’re also on the lookout for ways to achieve this goal while reducing the overlap and duplication of regulation that will help drive costs down. And it will also improve the accessibility of advice for consumers.”
Flunked this garbage twice – Fin Planning PD for accountants is a waste of time. Just tell me f off.
Dear John, yes i have never thought trying to wear too many hats is a good idea. Much better being a great Accountant rather than an average Accountant and failing Financial Adviser.
PS – you may want to update your website buddy.
It still says your AFSL is via DOVER – that’s a very big Doh for DOVER.
Seriously, no wonder you have failed.
Two speaking heads, neither with any idea both trying to point score. Pathetic.
Way, way, way too late for this call. The damage has already been inflicted by FASEA and continues to ravage the industry. Adviser numbers will drop dramatically and the cost of advice will continue to increase. Good for those advisers that decide to stick around, but not great for the general public looking for advice.
The same Labor that have actively voted for FARSEA, LIF and want Life Commissions reduced to zero.
At the same time want Industry Super to expand Intra Fund and General Advice / Sales, all paid for by HIDDEN COMMISSIONS and mostly provided by call centre jockeys with no FARSEA education, no FARSEA code, no BID.
Labor and LNP both as useless as each other.