The silver lining to the latest ASIC/APRA ‘Super Test’

The CEO of the AIOFP, Peter Johnston, reports on the silver lining to the latest ASIC/APRA ‘Super Test’.

Peter Johnston says,” The next 6 months will be pivotal to what extent the Government will amend or eliminate current legislation for the Advice community.

Our information is that Minister Jones is indicating the current proposed legislation will be presented to both Houses in the first quarter of 2024. This is significant because it is well and truly in the ‘re – election 2024 mode’ period where all Politicians are malleable to stay in power.

As history has recorded the AIOFP did affect results in the 2022 federal election.

Our Canberra conference commences during the last week of the last Parliamentary sitting session for 2023, WEDNESDAY NOVEMBER 29^TH. With ALP President WAYNE SWAN addressing us on THURSDAY 30^TH and MINISTER JONES at a yet to be determined time, a strong attendance from members at the conference will be important.

For this reason, we have deferred the 2 proposed meetings in Melbourne and Sydney before Xmas. We don’t want members choosing these options over the Canberra event – we need a strong presence in Canberra to get what we want.

We will conduct a Zoom meeting before the Conference on the new client opportunities (soon to be released) and how the Certified Financial Strategist designation will work for all members.

As Minister Jones points out, the Advice issues are only part of his extensive portfolio. We need to maximise our opportunities and the Canberra conference is critical to push for those 5 issues members wanted.

These are:

1. Consent, FDS and annual Opt – in forms to be abolished.
2. Advisers to use professional judgement on the size and content of a compulsory Financial Advice document to clients.
3. FASEA Exam content to be relevant and specific to an Adviser’s skills.
4. ASIC Levy to be assessed by an independent party and Advice fees to be tax deductible.
5. Risk commissions to be returned to pre LIF levels.

It is interesting that the Minister points out that Levy’s QAR ‘suggestions’ are just that. They are not legislation.

This, he said, should be wrapped up in the next three to four weeks, with draft legislation on the “red tape removal agenda” likely to be made public by the end of October.

The Minister will ‘cherry pick’ and probably dump the rest.

This is a position some have maintained from day one. Yet we have some entities still pushing for 100% QAR implementation.

Watch this space for more information shortly.