Australia’s incoming Financial Services Minister, Stephen Jones, says fixing the country’s financial advice sector is one of his three key priority areas.
Speaking at an FSC industry event during the election campaign, Jones acknowledged the financial services industry has experienced what he described as monumental changes over the last five years.
Referencing the cumulative changes wrought by the Banking Royal Commission recommendations and other regulatory reforms, the then shadow minister said “We understand you’ve been through a tornado of regulatory change,” adding that he appreciated the industry (institutions and advisers) and its clients are facing enormous issues.
In framing this picture of recent monumental change delivered by a tsunami of regulatory reforms, Jones’ message was that it is now time for more stability.
While emphasising the incoming Labor Government wants the financial services sector to be focused on the needs of its businesses and its clients over the next three years, Jones singled out the financial advice market as a key area of focus.
He said the previous Government had comprehensively failed in designing a safe and effective financial advice market for Australians – that it had increased red tape and complexity, leading to thousands of advisers leaving the industry:
…An Albanese Labor Government will fix the Government’s mess in financial advice
“They have obliterated the ability of Australians to access safe financial advice,” said Jones, adding “This must change. An Albanese Labor Government will fix the Government’s mess in financial advice, so that Australians have access to professional, reliable and affordable financial advice.”
In his address, Jones highlighted the proposed Experience Pathway transitional arrangement for ten-year advisers of good standing, and also made reference to the many streams within the financial advice profession and his commitment to recognise those streams within the future qualifications framework.
Minister Jones also spoke of to his evolving approach to the future of life insurance commissions (see: ALP Updates Position on Risk Commissions), and also said a Labor Government would review regulation and red tape for advice providers and superannuation funds while noting that nobody’s situation is enhanced by the provision of a hundred-page Statement of Advice: “This simply does not serve the interests of customers or businesses. We want to see this reduced,” he said.
In addition to financial advice, the other two financial services sector areas Jones is seeking to address are:
- Doing more to address issues of cyber security and economic crime – including establishing a National Anti-Scam Centre and a code of practice for major industry participants
- Reviewing and revising regulation in the payments sector to be fit for the digital 21st century
Outside of these key priority areas of financial advice, cyber security, and payments, the Minister said Labor does not have significant new plans.