‘Time to go forward, not back’: Jones

Financial advisers need a break to digest regulation and focus on their business without waiting for the “next regulatory hit”, according to shadow minister for financial services, Stephen Jones.

Speaking at the Responsible Investment Association of Australasia (RIAA) conference in Sydney, Labor’s Jones said the industry had been through a “tsunami” of change in the past few years.

“You’ve been through a tsunami of regulatory change; it didn’t start with the Royal Commission but that turbocharged things. We don’t apologise for spending a lot of time on the Royal Commission, but we do acknowledge now is the time to go forward, not backward.

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“We want to see all these regulatory and legislative changes digested so there’s some breathing space. There’s a whole lot of stuff that hasn’t been digested and we want to give you the opportunity to do that as we go into an even more uncertain time.

“We don’t need the sector looking over its shoulder for the next regulatory hit. What you need to be doing is focusing on the interest of the people that you invest on behalf of and to be focused on that.”

He added that a lot of change had been “politically-driven” and that was distracting the industry from their day job, particularly in the superannuation space.

“A lot of noise coming out of Parliamentary oversight committees has been, unfortunately, politically driven and has required the sector to be distracted from their day job, which is about ensuring members are getting great returns and that the funds are properly governed. Dealing with politically-motivated attacks, this needs to stop.

“If you’ve got a sector with $3 trillion in assets, which will move to $5 trillion over the life of the next Parliament, then you absolutely need strong regulation that is in the public interest.

“But there are other things that need to be focused on instead of super wars and political hits.”




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I can't help but be suspicious of the timing of various announcements by Stephen Jones. Labor have remained silent since they lost the 2013 election, apart from continuous calls to have a Royal Commission and we've seen the fallout from that. This is pure electioneering to take advantage of adviser disgruntlement over the way they've been treated under a Liberal Government. Don't get me wrong, the Liberal's deserve punishment, but let's not punish Australia by voting in a Labor Government.

Is this really what they bring our role down to "their day job, which is about ensuring members are getting great returns and that the funds are properly governed"? I'm sure i'm not the only adviser who's job is so much bigger than this tiny little piece of what we do for our clients.

We are in for yet another world of more pain. When the minister for financial services doesn't even understand what we do.

Where's that boiler maker application form?????

Our job as advisers is not to chase returns or ensure clients get great returns. We are no fund managers, this is the fund managers job. So why arent fund managers scrutinized with all the high MER's they have been charging for years.

It's a bit rich for the Mr Jones and the ALP to attempt to take the high ground and talk about politically driven agendas when they fully endorsed and supported their comrades in campaigns like the fox in the hen house. They didn't like the committees because Mr Wilson took steps to make the union funds accountable for a change. What Mr Jones is really saying is the current regulations are here to stay, "so we can digest them", despite everyone saying they are sick to their stomach with them. Further, first chance they get they will be banning insurance commissions and looking for anyway possible to benefit their union fund masters. The Libs are bad, the ALP will be much worse.

Don’t forget Stephen that the risk insurance space is just about dead and buried.
It’s not all about superannuation mate.
The very foundation of a financial plan or strategy is the risk mitigation, protection of not only the client themselves but their business and personal assets and their family members of business partners.
Without adequate foundations, the whole plan can come crashing down when the unforeseen strikes.
Let’s get the risk insurance advice space back on track so high quality professional risk advisers can run specialist practices profitably and successfully and allowed to flourish in order to financially protect Australians.
The commission levels driven out of the disaster that LIF was are not adequate.
The level of commission payment needs to be a max of 100% per cent upfront and a max of 20% renewal.
This can be reduced by any adviser if they decide to do so or the client may elect to pay a set and agreed fee.
It provides choice and flexibility to both parties in the arrangement.
At present, the new business inflows to insurance companies are being slaughtered and the claims costs escalating skyward resulting in unsustainable premium cost increases and mass policy cancellations.
This is a recipe for disaster.
In addition, there are thousands of advisers leaving due to ridiculous legislation & red tape and who are also broken, burnt out and mentally shattered.
I put this to you Stephen Jones:
If you can deliver this outcome to risk advisers you will be very well supported indeed.
But if you play politics before an election and don’t deliver what is desperately needed immediately and without delay you and your party will be seen as nothing more than liars and no better than the disgraceful treatment the Liberal Party have delivered to advisers for the last 8 years or so.
Now is your chance to actually make a difference and to fix the mess.
Advisers can really help everyday working Australians if they are given the freedom and respect they deserve to enable them to protect their families and businesses and to invest in their future.
We are important and we deserve much better than the the current Govt have never thought about.
This is your challenge.

hahahah... deliver what is desperately needed immediately and without delay ...... we are in pre election mode .... nothing more than promises to get elected .....hahahaha

Don’t forget Stephen that the risk insurance space is just about dead and buried.
It’s not all about superannuation mate.
The very foundation of a financial plan or strategy is the risk mitigation, protection of not only the client themselves but their business and personal assets and their family members of business partners.
Without adequate foundations, the whole plan can come crashing down when the unforeseen strikes.
Let’s get the risk insurance advice space back on track so high quality professional risk advisers can run specialist practices profitably and successfully and allowed to flourish in order to financially protect Australians.
The commission levels driven out of the disaster that LIF was are not adequate.
The level of commission payment needs to be a max of 100% per cent upfront and a max of 20% renewal.
This can be reduced by any adviser if they decide to do so or the client may elect to pay a set and agreed fee.
It provides choice and flexibility to both parties in the arrangement.
At present, the new business inflows to insurance companies are being slaughtered and the claims costs escalating skyward resulting in unsustainable premium cost increases and mass policy cancellations.
This is a recipe for disaster.
In addition, there are thousands of advisers leaving due to ridiculous legislation & red tape and who are also broken, burnt out and mentally shattered.
I put this to you Stephen Jones:
If you can deliver this outcome to risk advisers you will be very well supported indeed.
But if you play politics before an election and don’t deliver what is desperately needed immediately and without delay you and your party will be seen as nothing more than liars and no better than the disgraceful treatment the Liberal Party have delivered to advisers for the last 8 years or so.
Now is your chance to actually make a difference and to fix the mess.
Advisers can really help everyday working Australians if they are given the freedom and respect they deserve to enable them to protect their families and businesses and to invest in their future.
We are important and we deserve much better than the the current Govt have never thought about.
This is your challenge.

"He added that a lot of change had been “politically-driven” and that was distracting the industry from their day job, particularly in the superannuation space." ....He's missed the point. Regulatory change in regards to tax and super laws occurs almost annually at Budget night. We're used to that. He's out of touch with reality and will use this as ammunition to create curve outs of Union run super funds. Let's remember his party said they'd implement 100% of the Royal Commission recommendations, days after the the report, and blocked FASEA changes saying the Liberals were watering down consumer protection mechanisms. The only bodies he'll be seeking feedback from is AwareSuper and AustralianSuper.

It’s great to hear the hits have to stop but that’s not going to help us overall There needs to be some roll back here starting with a commission structure and responsibility period that is feasible responsible and sees the true value of the work done by the adviser
8/20 and 12 months has is and always will be the preferred and logical choice
Simpler SOAs for Risk only advice and a responsible respond to a “ typo” from ASIC rather then the sledgehammer approach currently used
I note though each party says they will fix it but neither has fully committed and advised their intentions ?? We all need to be careful of politicians ( Trojan horse style) bearing gifts

Having experienced what the current government has done to us, the old saying "with friends like these, who needs enemies?" comes to mind. The Libs were supposed to be about less government and red tape and pro business. So with what probably will be the next government saying: "We don’t apologise for spending a lot of time on the Royal Commission..." looks like we won't get a break regardless of who's in power. My personal opinion is that we deserve an apology from all sides. I do not for a moment suggest that the RC didn't uncover serious rot which was mind boggling. What I suggest is we were thrown out with the bank and AMP bathwater. Our concerns were completely ignored when a raft of legislation was rushed through that was ill conceived and poorly thought through. In +30 years I have yet to see our admin reduce.

“We want to see all these regulatory and legislative changes digested so there’s some breathing space," is basically saying they intend to do nothing about the state of legislation that governs the industry.

More so he wants to get feedback from a very select group of Union run super funds. He'll be nothing more than a Puppet once in power.

I'm a bit concerned that Mr Jones might not understand what we do if he describes our role as, ".......What you need to be doing is focusing on the interest of the people that you invest on behalf of and to be focused on that"

The role of a financial adviser is much much broader than just investment. I do trust that Mr Jones is aware of this.

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