Trump victory opens door to push ‘10 Commandments’ of advice reform: AIOFP

The Association of Independently Owned Financial Professionals (AIOFP) has once again argued that a tight race in the upcoming federal election is a positive for the advice community, with executive director Peter Johnston telling members now is the time to push the agenda to all sides of politics.

In a letter to members, Johnston said the association would present its reform platform – which he dubbed its “10 Commandments” – to a range of MPs at a dinner at Parliament House next Monday followed by both Financial Services Minister Stephen Jones and shadow minister Luke Howarth the following night.

“With the USA Trump victory and the left-wing Anthony Albanese government under considerable political pressure thanks to many ‘home goals’, the next federal election will be very close – a great outcome for the advice community and consumers,” he said.

“This environment provides the perfect opportunity to present our ‘10 Commandments’ wish list of policy adjustments/amendments to all sides of politics and assess who will support our position. This is the most opportune time in the political cycle that ‘subtle’ intimidation has the best chance of success.”

The list of priorities cover a range of issues that have caused unrest among the advice profession, with many contributing to the increasing cost of providing advice:

1. Remove Dixon Advisory out of the Compensation Scheme of Last Resort (CSLR) process.
2. Eliminate the ASIC adviser levy.
3. Eliminate annual fee consent forms.
4. Eliminate client annual opt-in forms.
5. Return risk market structure back to pre-LIF conditions.
6. Reject the Division 296 $3 million super tax legislation.
7. Reinstate Reduced Input Tax Credit (RITC) conditions.
8. Advice to become tax deductible for consumers.
9. Statement of advice (SOA) rationalisation.
10. Recognising the professional judgement of advisers.

Liberal MP and former adviser Bert van Manen, who recently introduced a private member’s bill aimed at simplifying the financial advice process that Johnston said can “educate all politicians on why the cost of advice is too high and what can be done to reduce it”, will address the Monday dinner.

“Our objective is to get the politicians to then pressure their ‘head office’ to support our position, we hope they will conclude that they want the advice community and their clients with them rather than against them,” he said.

During the Tuesday dinner event, both Jones and Howarth will address AIOFP members, with Johnston noting both will receive the “wish list of policy adjustments/outcomes” and be given the opportunity to respond.

“The minister and shadow will be asked to provide a simple yes or no response to each of the 10 demands, which will allow us to establish a ‘score card outcome’ to determine who we will support,” Johnston said.

He added: “Make no mistake about it, all sides of politics have commenced their election campaign and we need to exploit the opportunity to protect consumers and our profession going forward or wait for another three years to get listened to.”