Government tasks department to begin consulting on QAR

The government intends to shortly begin the consultation process that will inform its response to the Quality of Advice Review (QAR), ifa has learnt.

Namely, the Association of Independently Owned Financial Professionals (AIOFP) has been approached by the advice and investment branch of the Treasury’s retirement, advice, and investment division with an update about the QAR.

As per an email seen by ifa, the branch has been assigned the responsibility of assisting the government in formulating its response. The initial step towards this support involves collaborating with Stephen Jones, the Assistant Treasurer and Financial Services Minister, and his team to coordinate the consultation process.

Speaking to ifa, the executive director of AIOFP, Peter Johnston, confirmed that the group would be meeting with members of the Treasury branch on 4 April in Canberra.

Commenting on the likely delay in the government’s QAR response, as suggested by Minister Jones last week, Mr Johnston emphasised the need for the Minister to take sufficient time to ensure that the direction of the QAR is “fit for purpose”.

“Our message to those commentators calling for an immediate response is to please desist, grandstanding and goading may just have the opposite effect,” Mr Johnston said.

Last week, Mr Jones confirmed that the government would not reveal its position on Michelle Levy’s recommendations until after the May budget.

However, since the Treasury has only recently initiated the formal consultation process, concerns are growing that advisers may have to wait an extended period before receiving any updates from the government.

Last week, the chief executive officer of the Financial Planning Association (FPA) emphasised to the importance of maintaining the momentum on QAR.  

In a statement to ifa, Sarah Abood urged the minister to “push ahead as quickly as possible” with remaining consultations on certain recommendations and noted that the government could make significant progress in certain areas with “quick wins”.