Levy reacts to Jones’ plans to seek ‘expert analysis’ of QAR report

Financial Services Minister Stephen Jones tweeted an image with the independent lead of the Quality of Advice Review (QAR), Michelle Levy, on Thursday, and acknowledged that he had “a lot to think about”.

“Great to thank Michelle Levy in person for all her hard work unpacking the issues in the financial advice industry,” Mr Jones said.

However, it has since emerged that Mr Jones does not plan to do all the “thinking” alone. In fact, according to The Australian Financial Review, the Minister intends to engage additional “expert analysis” with the intention to “stress-test” the report before bringing any recommendations to parliament.

ifa reached out to Mr Jones’ office for comment but has yet to hear back regarding when the advice community can expect to receive concrete information on the implementation of some or all of the QAR recommendations.

ifa did, however, hear from Ms Levy who, in a written statement, said: “I hoped that the review did bring expert analysis to the area and so I do not think more analysis is required”. 

“But I understand why the Minister would want to speak with people and to think about what the industry would look like if the recommendations were adopted,” Ms Levy said.

“I hope that having done that he will be persuaded that they have real merit and will make good quality financial advice more affordable and more accessible.”

In her report, Ms Levy expressed hope that some of her recommendations would lead to quick wins, including those addressing charging arrangements, disclosure documents, and reporting requirements.

Ms Levy also shared that superannuation-specific recommendations would not require significant changes to the law.

Moreover, she described the new consent requirements for insurance products as “unlikely to be onerous”.

“I do not anticipate they will require an extended transition period and so they should, in my view, commence shortly after the relevant legislation is enacted,” the QAR reviewer said.

“The other recommendations will likely require a longer transition period,” she noted.

But, despite Ms Levy’s best intentions, the Minister has yet to disclose his plans.