Shadow minister accuses Jones of neglecting QAR, delaying reform

During a heated address to the House of Representatives last week, Stuart Robert, the shadow minister for financial services, accused Stephen Jones, the Financial Services Minister, of mishandling the passage of the Compensation Scheme of Last Resort (CSLR), despite bipartisan support, and neglecting the Quality of Advice Review (QAR) which he claimed was gathering dust in Mr Jones’ office.

In the address, which was heavily critical of Mr Jones and earned Mr Robert a caution from the deputy speaker regarding his use of “unparliamentary” language, the shadow minister called out the government for sitting on the review for 50 days — a review which, he said, if implemented “would make obtaining financial advice easier, cheaper and better for Australians”.

“Financial advice professionals deserve to be able to work in the best interest of Australians without one hand being tied behind their back through overburdening regulation,” Mr Robert said.

He accused the government of “hypocrisy” for its intention to “consult on the consultation” and demanded a time frame.

“I have already informed the government that the coalition will support legislation to implement the reforms in full as recommended right now,” Mr Robert said.

“By delaying the implementation of Dr Levy’s recommendations, the Assistant Treasurer and this government are denying Australians the opportunity to seek affordable, quality advice at a time when Australians are already finding it tough to meet cost-of-living challenges,” he added.

Last week, ifa learnt that the government intends to shortly begin the consultation process that will inform its response to the QAR.

As per an email seen by ifa, the advice and investment branch of the Treasury’s retirement, advice and investment division 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.

There is widespread agreement among advice groups that the government should prioritise announcing some quick wins in response to several QAR recommendations that have already gained significant support. Meanwhile, more time should be taken to consult on the recommendations that are considered more controversial, advice groups have agreed. 

Recently, 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”.