ifa learns Jones to give exclusive QAR response preview to fund CEOs

A small audience of superannuation fund CEOs and senior industry executives will be the first to hear the government’s response to the Quality of Advice Review (QAR) at an exclusive event organised by the peak body for the super industry ASFA, ifa has learnt.

ifa has seen the invitation addressed only to high execs, “cordially” inviting them to attend an exclusive breakfast with the Minister for Financial Services, Stephen Jones, on 13 June.

As per the invitation, it is here that the minister “will announce the government’s highly anticipated response” to the QAR.

Promising them a “unique opportunity to lift the quality of advice for superannuation fund members”, ASFA underlines that only “a small audience of fund CEOs and senior industry executives” have been invited to attend.

ifa also reached out to ASFA where a spokesperson confirmed that the event would indeed serve as the platform for the minister to unveil the response.

The government’s response to the QAR has been highly anticipated by the 16,000 financial advisers operating in the industry.

As reported on Wednesday, ifa learnt that the response is currently before the cabinet and that it should be made public within the next seven days.

Minister Jones has previously been criticised by advisers for enjoying a seemingly close alliance with super funds.

Speaking at an Industry Super Australia event earlier this year, the minister gave a firm indication that he is leaning towards heeding Michelle Levy’s recommendation to up the role funds play in the financial advice space — a proposal that has received a frosty reception from advisers.

“There are 16,000 licenced financial advisers in the country, so the numbers don’t square. So, we’ve got to find a way to deliver information and advice to members who are approaching retirement,” Mr Jones said at the time.

“Whether you like it or not, one of the first phone numbers that they call is their superannuation fund. At the moment, law that has been passed by the previous parliaments, supported by me, puts an obligation on funds to put in place a strategy for their members for their retirement phase. And at the very same moment, we put in all of these obstacles, which make it almost impossible for the funds to do anything about that. So, I’m keen on squaring that off,” he explained.

This, however, is not the first time Mr Jones has dropped such hints. In March, he confirmed he was seriously considering allowing entities other than relevant providers — professional advisers currently registered as such — to provide advice.

As part of the QAR, the reviewer, Ms Levy, recommended the removal of obstacles that prevent super funds from providing more retirement advice to their members.

ASFA members, and possible recipients of the exclusive breakfast invitation, include among others the country’s biggest funds Australian Super, HESTA, and the Australian Retirement Trust.

ifa has reached out to Minister Jones for comment.