AIOFP CSLR HIGH COURT CHALLENGE/10 year rule

Some members are asking what the next steps will be? Please be advised of the following –

• The CSLR was widely accepted in its original format courtesy of the 2017 Ramsay Review, Commissioner Hayne in his 2019 RC Report and had clear bipartisan political support up until it was passed by the Lower House in March 2023.
• CSLR was also supported by the Advice Profession until the FSC ‘spun their magic in the Canberra corridors of the Upper House during June 2023 to produce a diabolical outcome for Consumers and the Advice Profession but one that suited their Institutional members.
• CSLR had passed both Houses by June 22nd, 2023, and granted Royal Assent on July 3^rd to commence operations on April 2nd 2024 – some will argue it should have started the day before on April Fools day.
• The AIOFP does not want to be responsible for dismantling an important Consumer protection mechanism if we are successful with a High Court challenge, but we will have no choice if the structure of CSLR is not satisfactorily and fairly amended.
• We will make that decision once the Minister receives Treasury’s CSLR recommendations in the near future and announces the Governments position.
• The funding of a High Court challenge will be put to members at the AIOFP AGM.
• Considering the AIOFP was responsible for creating/lobbying the Education Pathways/10 year rule Legislation that has benefited 4580 Experienced Financial/Risk Advisers, the AIOFP Board would like to offer them an exclusive opportunity.
• We are offering a 12 month 50% discounted price to become an Affiliate Member of the AIOFP for $184 [normally $368], no voting rights at conferences/AGM but access to all other member services and protection.
• These fees will help subsidise a High Court challenge which will assist the Profession and send a message to Canberra we won’t be trodden on, and the Advice Profession will push back. The greater number of Members the AIOFP has, the greater the influence in Canberra.

What happened behind the scenes in Canberra with the 10 year rule? The Advice Profession and the 4580 qualifying Advisers owe a debt of gratitude to ALP National President and former Treasurer Wayne Swan for championing the Legislation.

Early 2021 the AIOFP proposed the policy detail to Shadow Stephen Jones who had to get approval from the Shadow Cabinet for the content. After the Shorten loss at the ‘unlosable’ 2019 election, it was thought the ALP released too much pre – election Policy information contributing to their defeat and were therefore reticent to release any information leading into the 2022 election.

Enter ‘Swannie’, he convinced his comrades to back the Legislation which was announced at the AIOFP 2021 Hunter Valley Conference by Shadow Jones and within 24 hours Minister Hume matched the policy. Why? Swan’s Father and Brother were former MLC Agents and he understands our Profession. Why Hume’s decision? It was around 7 months to the election.

The University/Education sector did not like the legislation, they wanted the $68,700,000 in fees [4580 x $15,000 Degree courses] and the Consumer groups including the FAAA with its ‘consumer hat on’ lobbied hard against the legislation claiming it was not in the best interests of Consumers.

Thankfully Swan and Jones maintained the line and 4580 experienced Advisers won the day, this is the only positive piece of industry Legislation over the past 20 years. We will now be contacting Wayne Swan to ask for his assistance with the fast approaching ‘Education Cliff’ and CSLR position.

We will keep you informed of progress.