Off the back of the release of the first Quality of Advice review draft legislation, Minister for Financial Services Stephen Jones will be pushed by the Financial Advice Association Australia on the next stages in a Q&A on the final day of the FAAA Congress.
Professional Planner is the media partner for Congress, which will be held on 20-22 November in Adelaide.
FAAA chief executive Sarah Abood will facilitate the Q&A and intends to push the minister on the timeline over announcing changes to Statements of Advice and the removal of the safe harbour steps from the Best Interest Duty, adding this reform is the “gamechanger” in terms of reducing the cost of delivering advice.
Jones told reporters on Monday afternoon the delay on those recommendations was because there a “few things to work through” but draft legislation will be due in the near future.
“It’s the big missing piece for our sector that’s come out of the Stream One reforms,” Abood tells Professional Planner.
“Certainly, something I’ll be addressing with the minister is how quickly we can expect to see those draft regulations. There would be concern if they’re being held up beyond what is absolutely necessary.”
FAAA head of policy Phil Anderson says the omissions aren’t surprising and that it was necessary to deal with it separately.
“There’s an interdependency between what’s in a statement of advice and how you establish compliance with the best interest duty because traditionally a lot of that confirmation of compliance with the best interest duty document is in the SOA,” Anderson says.
Anderson says it’s important to get specific policy details around this right because the industry needs confidence to fully enact the benefits of the reforms.
“If we leave them uncertain and anxious and how something could play out in the eyes of ASIC or when viewed by AFCA then we won’t reap the full benefits of this,” Anderson says.