Opposition: FASEA a ‘monumental mishandling’

The roll out of the Financial Adviser Standards and Ethics Authority (FASEA) and the Government’s oversight of the body and the reforms has been “woeful”, according to the Shadow Assistant Treasurer and Shadow Minister for Financial Services, Stephen Jones.

Jones used an address at the SMSF Association National Conference on the Gold Coast on Thursday to criticise the handling of the professional standards reforms.

He said the Labor party “100% supported” the project of professionalising and ensuring that everyone who had the title of financial adviser or financial planner had the right qualifications and followed the industry code of conduct and ethics.

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“We acknowledge the FASEA roll out and the government’s oversight of the rollout has been woeful. Unfortunately, many delegates at this conference have been the meat in that unpalatable sandwich,” he said.

“…we supported the extension for the deadline for advisers to take the FASEA exam, but there has been a monumental mishandling in the roll out of the reforms.”

Jones noted the advice gap and said there were three areas in which to improve the industry. These were:

  1. The role for the government and the industry to provide financial literacy programs to empower people to make informed choices about savings;
  2. Affordable income advice be available to all Australians; and
  3. The provision of advice be decoupled from the sales process. Prohibition of commissions, however they are described, from product manufacturers and advisers.

“By doing this, we believe we can build a robust profession to provide Australians professional, affordable, quality advice,” he said.

“This way we can ensure this monumental creation [superannuation] is something that does the job that it was intended to do – provide Aussies with access to a dignified retirement and better quality of life.”




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It's not often I agree with the Opposition, but they've got it 100% right here!!

So Stephen Jones is calling for the prohibition of commissions for Risk Insurance ?
So Stephen Jones agrees with the completely irresponsible and unfounded statement from Kenneth Hayne ?
So Stephen Jones believes that eradicating commissions (Point 3) from Risk Insurance will in turn result in affordable advice for Australians ?
The removal of grandfathered commissions from super and pension products will actually have the effect of increasing the cost to the consumer......Stephen Jones.!!
Will Stephen Jones guarantee that Risk Insurance commissions will never be eradicated under a Labor Govt ?
Will Stephen Jones guarantee this as his comrade Bill Shorten guaranteed in 2011 that grandfathered commissions were a contractual right of the adviser after receiving legal advice from the Australian Govt Solicitor ?
Interestingly, after several repetitive attempts to secure copies of that very advice under the Freedom of Information Act, it has been refused to be released on numerous occasions sighting professional legal privilege.
The means that under no circumstances will Treasury provide the details of the advice Bill Shorten received in 2011
following an assessment of the Constitution and the problematic issue of removing the contractual rights and property of the adviser.
But hey, its now ok to proceed even though the Constitution hasn't changed.

"The provision of advice be decoupled from the sales process. Prohibition of commissions, however they are described, from product manufacturers and advisers"
How about Intra-Fund Advice Fees Mr Jones?

"Monumental F*** Up" that headline should read......

it's a monumental fuck up alright.

'Monumental' is an understatement

I'm not sure what is more stupid - FASEA's Code of Ethics or the fact that Labor believe scrapping life insurance commissions will result in more affordable financial advice?

The FASEA fiasco sits squarely at the feet of the Chair, Cathy Walter and the Board. How many more failures and questionable outcomes can Ms Walters and the Board members preside over before their capability is examined and more importantly before they are bestowed other "appointed" roles of such responsibility? A consistent employee performance review of "woeful" wouldn't last long in any other business. It's a disgrace.

FASEA is the biggest joke ever. Don't even talk to me about the ASIC levy. Talk about a fee for no service....

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