AIOFP takes adviser fight to pollies

In a recent communication to members, AIOFP executive director Peter Johnston said the next six months would be a political “perfect storm” for advisers in seeking to make their voices heard.

Mr Johnston said the association was targeting eight marginal Coalition seats around the country – Chisholm, Bass, Longman, Wentworth, Braddon, Swan, Boothby and Casey – with a range of demands including relaxation of education standards for experienced advisers and raising commission levels under the LIF rules.

“We want these politicians going back to ‘head office’ assisting our cause through fear of losing their seat,” he said.

“The Coalition has only a three seat margin from 2019, [so] it will be a close election again.”

With some of the seats being held by as little as an 0.5 per cent margin, Mr Johnston said advisers would have maths on their side by taking a unified stance on these issues.

“When you consider that each electorate is around 100,000 votes the maths is easy – 1 per cent represents 1,000 voters,” he said.

“If we have 50 advisers with 200 clients each in an electorate, that’s 10,000 potential votes or 10 per cent of clients angry over compliance costs they are paying for.”

Communications sent to the MPs in marginal seats detailed proposals including a relaxation of educational standards for experienced advisers, suggesting those with 10 or more years’ industry experience should not have to attain a full bachelor degree.

In addition, the proposals called for an increase in risk advice commission levels to 85 per cent and the scrapping of annual fee consent forms, which the association said were “unneccessary duplication”.

“Working Australians are required by law to make superannuation contributions their whole working life; we believe they should be entitled to affordable and professional advice when the time comes to plan for retirement,” the association said.