Jones delays disclosure of QAR response until after May budget

As previously reported, Financial Services Minister Stephen Jones has opted to engage with advisers by attending various Conexus Financial events, which require advisers to pay at least $170 per seat, rather than communicating through his own press team.

According to ifa’s sources, during the most recent breakfast engagement held in Sydney on Monday, Mr Jones informed attendees that the government’s stance on Michelle Levy’s recommendations would not be disclosed until after the May budget.

Speaking to ifa, Emma Johnson, financial services lawyer at Cowell Clarke, expressed disappointment with what Mr Jones had to say.

Namely, Ms Johnson, who was in attendance, said: “It’s deeply disappointing for advisers to have the implementation of the Levy recommendations delayed.”

“And who knows if any will even pass,” Ms Johnson said.

According to her, advisers are not going to see the recommendations on the legislative agenda this year.

“The recommendations, although some tweaking may be required, are on the whole, good for advisers. It provides them with some self-determination and relieves them from regulatory burden,” Ms Johnson said.

“The sheer numbers leaving the industry shows they need these changes,” she added.

Although she does agree with some advisers and groups that have said “tweaks” to the recommendations may be required to ensure adequate consumer protections remain, she believes that “the recommendations are on the whole, solid and have broad industry support”.

“Waiting until post-budget is entirely inappropriate. What will government and Jones know then that they do not know now?” Ms Johnson questioned.

“It’s already clear that government is not going to implement Levy’s recommendation as a whole, so why wait to reveal what’s in, what’s out, and what’s still up for discussion?”

Also in attendance, Peter Bryant, financial services executive and head of business development at Morningstar, told ifa that clarity on the government’s response is needed for industry planning.

“The industry has plenty of issues to focus on in the meantime. That said, the sooner there is clarity regarding the government’s response to the review, the better placed the industry will be to determine any necessary changes to business models and how we might invest for improved customer outcomes,” Mr Bryant said, adding that the Minister told attendees that likely reforms would be known by the end of the year. 

Reacting to Mr Jones’ announcement, the Association of Financial Advisers (AFA) said it was not surprised.

“We understand that the Minister has made the point that we will not hear a response from the government until after the budget,” the AFA said in a written statement to ifa.  

“We are not surprised by this given that the budget is less than two months away and the Treasury would be very focused upon that in the weeks leading up to the budget being announced.”