The CEO of the AIOFP, Peter Johnston, reports on the “Quality of Advice” Review.

We have members getting concerned about ongoing press commentary on this Review and the speculation of more unwanted changes – it is time to put things into perspective: –

  • This is a Review put in place by the former Morrison Government under dubious circumstances. This Government had ‘only’ been in power [and control of the industry with an agenda] for 9 years and suddenly calls for a Review 2 months out from an Election!? Rather suspicious to say the least……
  • It was a clear diversionary tactic to take the focus away from what a pathetically brutal job they had done for 9 years by deferring the Review and results until post – election to avoid accountability pre – election; also giving false hope that circumstances will change if they are re – elected. Fortunately, they were held to account at the election by the Advice community, their clients and other consumers – particularly in the Seat of Kooyong.
  • Former Minister Hume called for this Review but did not give any indications she would take any notice of the recommendations from the outset anyway. As we had witnessed continually over the past 9 years, they had an agenda and would listen to no one about anything that opposed their mission to cull Advisers.
  • We think Minister Jones is being respectful of this taxpayer funded Review, of course why would the Minister not be interested in the recommendations? But, considering the Minister is proceeding with the CSLR and ‘10 Year rule’ regardless of this Review, it clearly suggests the Minister he will not necessarily be influenced by it.

We think this Quality of Advice Review was incorrectly titled. The ultra – low AFCA advice complaint results suggest the quality of Advice is not the problem, it’s the cost of Advice that needs addressing.

Rationalizing the compliance regime and eliminating any Advice subsidization is a great place to start. The Review should have been titled ‘Reducing the cost of Advice’. This of course did not suit the Morrison Governments narrative of blaming Advisers for all ills of the industry therefore justifying their brutal attack on Advisers.

Now that the final ‘cliff exam’ dates are completed and the first sitting of the new Parliament completes next Thursday August 4th, we will be intensifying our lobbying efforts in Canberra. The next sitting period is September 5 – 15th.


Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621 | Download my business card

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