Minister for Financial Services Stephen Jones handled the portfolio with a sense of purpose and in a manner that could be regarded as inertia or diligence, depending on your preconceptions of both the man himself and the government he served in.
What’s not in doubt is he gave segments of the financial services community – particularly financial advice – a profile and a prominence in the government’s crowded legislative agenda that was probably flattering. Bluntly, financial advice just doesn’t matter to most Australians. Despite what the advice profession says, the services it offers aren’t for everyone.
The benefits of advice are clear to those who receive it, and it’s true that if more people received advice they’d likely be more financially secure. Jones understood that. But to the broader community advice is a much murkier issue. And besides, just because something has demonstrable benefits doesn’t mean it will be picked up and adopted broadly. Eating healthily and exercising regularly have demonstrable benefits, yet Australia has a high obesity rate. You can lead a horse to water, and all that.
When he was sworn in as Minister for Financial Services and Assistant Treasurer in the Albanese Labor government, Jones, who has announced he will not contest the next election after 15 years representing the NSW electorate of Whitlam, inherited a review of financial advice regulation that he didn’t initiate. It would have been understandable if he’d preferred to shelve the final report of the Quality of Advice Review, but he didn’t – really, he couldn’t – do so.
The government did not agree with all the review’s recommendations and so he set about crafting a package of reforms, building on the QAR recommendations but with some modifications that will reverberate through the advice profession for a generation or longer.
How effectively they’re adopted remains to be seen and will be in the head of the profession and other entities, such as super funds, that want to deliver advice to the public.
On the superannuation front Jones focused on issues that matter to a lot more people than financial advice does, such as improving the member experience and service standards, including having insurance claims paid in a timely matter with the least stress to beneficiaries.
Jones warned the industry on numerous occasions that if it didn’t get its own house in order the government would act. When the industry didn’t get its house in order, the government acted.
Some of Jones’ greatest achievements were outside his direct portfolio responsibilities but as part of broader government, including on marriage equality. There are swathes of Australians, not only in his electorate, who appreciated and will remember what he did.
Jones cared about super fund members, and he cared about financial advisers and their clients. Observing his actions and words as minister, it was clear he meant to support advisers and super funds to deliver better outcomes for them and to hold advisers and super funds to account where those services were lacking.
He worked to protect workers’ super and to stamp out financial scams, from wherever they originated and whomever they targeted. Industry observers noted that on Jones’ watch the objective of superannuation was enshrined in legislation, the Superannuation Guarantee increased to 12 per cent and superannuation is now provided on top of paid parental leave. Additionally, progress was made to ensure employees’ superannuation is paid at the same time as their salary and wages.
Whatever Jones’ career holds outside politics, he’ll be remembered as someone who was never afraid to front up and address his critics, and trust in the power of persuasion to get his views across.
Comments noting his departure from politics referenced his open-door policy and a willingness to consult – though at times his propensity to do that drove the industry to distraction, when what it wanted was more certainty and a faster pace of reform.
At numerous events, including many run by Conexus Financial, publisher of Investment Magazine and Professional Planner, he engaged with probably tens of thousands of individuals – financial advisers, super fund executives and others – constructively, and rarely took a backwards step.
The ultimate question for anyone serving in public life is to ask: did they leave things better than they found them? Stephen Jones did.