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Labor MP pledges to address advice industry in ‘meltdown’

The shadow financial services minister has said that the advice industry will be a key area of focus for the Labor party should it win the federal election in May.

During a keynote at the Responsible Investment Association Australasia’s (RIAA) RI Summit on Thursday, 7 April, Stephen Jones said that, along with cyber crime and the payments system, the Labor party has identified the advice sector as a top priority, which he said is in “meltdown”.

“Poorly managed change on behalf of the government, huge gaps that exist and I think there’s an urgent job of what to be done in that area,” he said.

Mr Jones said an Albanese government would pledge “stability and certainty” for the financial services industry and would allow the current regulation imposed on the sector to be “digested”.

“That means giving the sector some room to breathing space to do that,” he said.

“We don’t need the sector looking over it’s shoulder for the next regulatory hit to come from a government. What you need to be doing is focusing on the interests of the people that you invest on behalf of.”

Mr Jones’ comments come after a recent appearance on the ifa Show podcast, in which he promised to overturn current education requirements for the advice industry, saying Labor would not require advisers with 10 years of experience and an “unblemished record” to complete a university degree to practice.

Currently, existing advisers with no degree must have an approved qualification by 1 January 2026.

“Let's take a step back and say, ‘let's do some recognition of their prior learning and experience, not a Mickey mouse job’. So we'll do it properly,” Mr Jones said on the podcast.

“There's been some concern in the sector for everyone who's done the degree that, ‘That was a waste of time for me when somebody else is going to get a free ride?’

“We're not saying it's a proper recognition of your professional experience and qualifications so that you can jump through the right hook for you in a way that is good for you, but safe for the people you're advising.”

On the same episode, the shadow assistant treasurer gave a candid assessment of the financial services industry, labelling the poorly managed “tsunami of regulatory changes” as the main culprit for adviser exodus in Australia.

“There was a whole bunch of changes that were in play, there was a known timeline for it, not going back months or even years. Some of this stuff has been five, six years in the making, how a government could monumentally mishandle a bunch of this stuff is beyond belief, particularly a government that says it's a good economic manager."

Listen to the full podcast with Mr Jones here.

Neil Griffiths

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.

Comments (32)

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  • “Poorly managed change on behalf of the government (of which Labor supported it ALL), huge gaps that exist and I think there’s an urgent job of what to be done in that area,” Jones said.
    But then he says to do NOTHING to FIX the BS mass Over regulation.
    Canberra Pollies both LNP & Labor are as useless as each other. Then add ASIC with the likes of Ms Press and their own always Anti Adviser interpretation of the law through thousands of pages of BS REGS.
    Canberra's entire bureaucratic mess needs to be cleaned out, get rid of them all and start again.
    0
  • Jones is a Union man through and through. Trust him at your peril.
    5
  • Clearly wants union supported industry funds to provide all advice in future. Labor has never wanted anything else
    22
  • To quote Chris Bowen after the Hayne RC “the ALP if elected will immediately implement every recommendation of the Royal Commission” “we don’t need to see what’s in the final report to know we will immediately make these changes”.
    And Mr Jones is also the member who has repeatedly asked for the removal of all insurance commissions including existing trail…. The ALP are nothing more than a Wolf dressed in sheeps clothing
    14
  • Anyone who thinks Labor will look after financial planners clearly has rocks in their head!
    27
  • So Jones wants to keep the legislation in place which is causing the meltdown. We want and need sensible amendments NOT STABILITY!!!
    8
  • Where was Mr Jones and the Labor party when the Liberals were hammering our industry with over regulation, destroying peoples lives as advisers and even contributing to their deaths in a sad but tragic few, to now say that they are going to give our industry priority to do what?
    He has already come out and said that he is against commissions in risk advice. So does he understand how risk advice is provided? Does he understand supply chains when it come to our sector.
    Mr Jones is a lawyer who joined the Community and Public Sector Union (CPSU) in 1993. He worked in various roles, including NSW branch secretary and secretary of the Communications Division. He was seconded to the Australian Council of Trade Unions (ACTU) in 2004, where he worked to secure compensation for victims of James Hardie asbestos-related disease. Stephen Jones was elected as national secretary of the CPSU in 2005 and led the union's campaign against the Howard government's WorkChoices industrial laws in the lead up to the 2007 Australian federal election.
    So, when it comes to our industry, I’m certain he will take a look at our industry so as to favour the Industry Funds only. I hope I am wrong, but a leopard doesn’t change its spots.
    If Mr Jones had any integrity whatsoever, he would have stood up for our industry as it began bleeding, questioned every aspect of the changes we have had to endure under a barrage of lies and deception by the Liberal Government and have insisted upon a regulatory impact statement first before the changes were pushed through.
    Personally, I believe Labor simply allowed the Liberal party to do the damage as indeed they knew or ought to have known the outcome for the sector by not challenging anything.
    Another comrade of Mr Jones is Labor Senator Jenny McAllister who has insisted on calling our industry and its advisers “shonks”. Did Mr Jones object to such statements on our behalf ? No
    Both the Labor Party and the Liberal Party are a disgrace and are bent on destroying this once proud nation bit by bit to achieve a political agenda and or ideology.
    If they remove commissions on risk, consumers will be worse of as a result. But will this stop further attacks on our industry, probably not. What about other sectors such as mortgage broking. Would that be on a hit list also?
    Face it, Labor or Liberal, they are both evil and not to be trusted. Ever. Why?
    Because they simply don’t care about you, your business, your family, your clients. Simple.
    39
    • FP is done either way Saturday, 09 April 2022
      They were voting for it and asking it be made worse, this bloke's actions speak louder than any words he offers.
      0
  • Jones might be a liar, and he might make things worse.

    Hume definitely is a liar, and definitely has made things worse. She has a clear track record of dishonesty and incompetence, and shows not the slightest sign of improving.

    I'd rather take my chances with Jones than put up with more of the same from Hume.
    9
  • Both parties will promise the world to get a vote! Get the lawyers and the politicians out of the profession; they have no idea how the rules etc relate to the real world! I suggest that the various industry bodies get together and put together relevant documents for 1) Educational Standards to include all specialties of advice providers and allow for these specialties; 2) Develop a workable guideline for key documents to dovetail with the Corp Law requirements; 3) Formulate a generic code of Ethics that applies across the board (combined ASIC [ex FASEA], FPA, TPB). FSC and ASIC panels should have pracitising financial planners/ advisers on any regulatory/ enforcement body. Tired of been overloaded with red tape that doesn't improve the client experience, quality of advice and efficiencies of our profession.
    7
  • Labor is NOT the answer Friday, 08 April 2022
    It is frightening to think there are so many advisers out there that are so disillusioned to think Labor will be better option than Liberal. Yes liberal have destroyed us, but Labor will take us to the depths of despair, and beyond, yes its possible!. Labor are fully in cahoots with industry funds, and will do everything in their power to grow their market control, because they fund the unions, whom influence politicians via donations. What a criminal enterprise. This frightens me more than any other issue we face. If you vote Labor, then I must say you are not fit and proper to be a Financial Adviser based on this fact alone. Labor is not the answer to our problems.
    48
    • No one is saying Labor is the answer.

      Perhaps you direct your anger towards the Licencees, who are NOT fit to hold an AFSL!
      1