The Advisers Association (TAA) CEO Neil Macdonald has called for the upcoming Quality of Advice Review (QAR) to “remove adviser and licensee fear” following heavy regulation and compliance in recent years.
In a new opinion piece published on ifa, Mr Macdonald said the “highly-regulated” environment has seen government and regulators push an “anti-adviser bandwagon” which has advisers and licensees cautious of making even the most minor of errors.
“The fear of getting something wrong is compounded by multiple overlays of the same data and information being required by the client, the adviser, the licensee, product and service providers, trustees, ASIC, APRA, etc., at different times and in different and often unique ways,” Mr Macdonald wrote.
“The real cost of this situation is that access to affordable quality advice has become virtually impossible for everyday Australians. The cost for advised clients has also had to increase, even though the need for advice, the demand for advice and the number of consumers seeking advice are increasing.”
He argued that the QAR has a genuine opportunity to bring industry stakeholders, government and regulators together and collaborate on how to provide quality financial advice to Australians.
The opinion piece continues: “The new assistant Treasurer and financial services Minister, Stephen Jones, was recently quoted as saying he wants to fix the ‘hot mess’ that financial advising has become in this country, and quickly. He said he wants to stem the flow of advisers exiting the industry and stop advisers from having to jump through ‘crazy hoops’ in order to deliver advice, so that more Australians have access to high-quality, affordable financial advice.
“Mr Jones… we’re going to help you do that.”
Read the full piece here.
Last month, The Advisers Association featured in the Joint Associations Working Group’s (JAWG) QAR submission – made up of 11 other key associations such as the FPA, AFA and FSC – which called for a more consumer-focused regulatory approach, reduced costs and a better recognition of professional judgement for financial advisers.
Mr Macdonald said TAA’s biggest concern from the upcoming review is that financial planning is finally recognised as a profession.
“Since the Future of Financial Advice reforms came in, we’ve done everything the government asked us to do,” he said.
“We now have a code of ethics, we have a best interests duty, we have high minimum education standards, we have a dispute resolutions system. It’s time to respect the financial planning profession as a profession.”
Meanwhile just last week, TAA announced it will merge with the Authorised Representatives Association (ARA).
Funny to see Neil trying to give the industry some advice. Wasn’t he head of “The Advisers Association” when AMP unceremoniously changed their BOLR terms right before they started booting advisers?
You will never remove the fear in this socialist industry
The mere fact that “The Advisers Association” made a joint submission with the FSC is enough for me to write them off.
Indeed. The FSC are the arch enemy. Exists solely to manipulate policy to flog more product. End of story. Michelle Levy should have a look at the FSC circus and evidence revealed at the Banking RC when formulating her QAR recommendations.
It’s ironic that Mr Macdonald, the CEO of the TAA which was formed by AMP Advisers should advise the QAR on what the outcomes of that Review should be. It was AMP and the Banks, that lead the Industry to the Royal Commission which forced the Government to intervene in how the Industry is regulated. It’s a bit like the Fox advising the Farmer how to build the Hen House and to make sure it’s out of sight of the Farm House! If it wasn’t so serious, it would be funny!
You almost imply that ALL AMP Advisers are somehow lax. Perhaps MrMacDonald is one of the good guys? Surely you can’t tar them all with the same brush?
Some dodge posts and likes here lol – NM and his teams are indeed one of the good ones left, and in fact a big driver towards the direction the profession needs to head. AMP’s actions were theirs, not an association’s. And where it not for TAA, things would have been far worse.
Absolute garbage. The TAA bascially failed and Neil and his team should not be allowed to fail again
Totally agree! Surely if NM and the TAA had any spine, they would have said to AMP, the Licensee, that the business practices (BOLR, product targets, fees for no service, etc) were unacceptable to the AMP Advisers and that unless the Licensee changed the business model that the TAA would recommend that their advisers move AFSL’s or set up their own AFSL. Instead, TAA just took what AMP served up to them and then complained that it wasn’t fair. The RC had to intervene and made recommendations that the Government regulate the Industry to annul these practices.
I note you may not have been close to understanding how well NM n team acted on behalf of advisers interest. Certainly misstating the past. I could only praise their assistance and thank them. Some impractical thoughts and not understanding their charter and responsibilities