Education Pathway discussions with the AIOFP and Treasury.

We have had another very fruitful meeting with the Canberra Treasury team about the EDUCATION PATHWAY and related matters. It is again refreshing to meet with key stakeholders who are open minded and interested in delivering the best outcome for Consumers and the Advice industry. These are different people to the QAR team we met with a few weeks back.

Minister Jones should be congratulated on creating such an environment to get a fair outcome for all stakeholders.

As we have alluded to in the recent past, the theatre around QAR is largely a waste of time and resources in our view, we all know the Compliance regime needs drastic surgery and consumers need to be protected, it’s a no brainer.

Unfortunately, Ms Levy and the Digital factions ongoing commentary are slowing the consultation process with their self – interested rhetoric, it has sucked the energy and oxygen out of any other discussion. Great for the profile of some, but not that good for Advisers or consumers.

It should be noted that no one from the Digital faction has disagreed with Richard Williams views around the global failure of digital advice for retail consumers in our QAR Paper…..what does that tell you?

As a consequence of this ongoing QAR drama, many have been blindsided over what the Minister has actually said in the past with undoing some of the controversial aspects of FASEA/LIF, please consider the following, we think you will be pleased –

1. EDUCATION PATHWAY / 10 year rule – the key issue is the 10  year stint does not have to be consecutive during the 15year period [ 1/1/2007 – 31/12/2021]. This alleviates the potential problem of leaving the industry for certain reasons [family, holidays, career change] during this time – a very fair outcome. In addition, this is reported on a self – assessment basis with special circumstances considered by the Minister.
2. The Minister has stated he will reassess the EXAM format –  https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/upcoming-consultation-financial-adviser-professional
3. The Minister will reassess the NEW ENTRANTS conditions across the industry –https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/consultation-open-financial-adviser-education-0

These 3 aspects have been lost in the QAR ‘whirlpool’ of melo – drama, self – promotion, excessive noise, grandstanding and self – interest, however the Minister has proven to be a person of great integrity you can trust with political promises.

Each issue will be reviewed by Treasury under the current consultation process which will give AIOFP the chance to express their views.

As we have said many times recently, Minister Jones was respectful to Ms Levy’s assessment process until December 16th without making any comment and now she is now demanding a response to her views. Take out the Xmas/January period, Ms Levy is demanding a response in less than 4 months from the Minister when she had over 9 months.

It seems Ms Levy has forgotten she is a Liberal Party appointee and already been paid for her services, perhaps a leaf out of Commissioner Haynes quote book would be apt –‘let the Report speak for itself, I will remain silent’.

Will keep you informed of progress.

We have had some questions about yesterday’s email from members –

• Q – Will the AIOFP assist members who have extraordinary circumstances around the 10 – year rule with a submission to ASIC and the Minister?   A – yes, we have a good working relationship with both the Minister’s office and ASIC and will assist where possible.
• Q – What will be in our submission to Treasury which closes today? A – It will be our shortest submission in our 25 year history, we have agreed with all aspects of the proposed Bill with the exception of increasing the time frame out to 1/1/2026 to cover any anomalies.

We are working on the educational pathway for RISK ADVISERS to be a 6 – month course, increasing commission levels, reducing compliance and amending the Exam content, but we must be patient.

As alluded to yesterday, the QAR fiasco has delayed everything by 12 months and Minister Jones has only been in the chair for 12 months……fair to say our woes are not the only issues on his plate.