Jones clarifies role of new class of adviser
Minister for Financial Services, Stephen Jones, has said the role of new class of adviser is not a “backdoor attempt” by the government to allow them to provide full advice.
In the draft legislation regarding the second tranche of the Delivering Better Financial Outcomes reforms, it was stated that a new class of adviser would be introduced to help close the advice gap.
These would be advisers who are unable to charge a fee or receive commission. They were initially called qualified advisers but are currently called the new class of adviser.
Further details about the second tranche of the reforms was announced last week, but it excluded information on the new class of adviser which would be consulted on and combined with the draft legislation in due course.
In conservation with Financial Services Council (FSC) chief executive, Blake Briggs, Jones discussed the new class of adviser and what they will be able to provide advice on. Briggs said many advisers were worried the new class would have a greater ability to give advice than originally envisaged.
Jones said: “The role of the new class of adviser will be to provide advice on retirement in relation their interest in the super fund.
“This is not some backdoor attempt to have the new class of adviser providing a full range of advice, comprehensive advice, on all things financial. That was never the intent and not what we announced and not what we intend to do.
“Those broader trustee obligations still pertain, it’s not the case that this person will be able to provide full-blown advice on all matters retirement that have no relation to their interest in the fund.
“If we need to make some adjustments to the detail then of course, we will do that. If you look at the package as it sits within the SIS Act and other obligations, then you can only come to that conclusion.”
At the time of the original reforms in December 2023, he stated: “On scope, qualified advisers will focus on providing simple financial advice. On fees, qualified advisers will be prohibited from charging a fee and from receiving a commission, which will help to restrict their advice to simple advice.
“And on qualifications, as the name suggests, they will be required to meet a government-mandated education standard. The exact level of education will be determined in time, but a minimum standard of a diploma may be the right balance to be less onerous than the requirements for professional advisers.”
Jones announced earlier this year that he will be retiring after this year’s upcoming federal election after 15 years in politics.
AUTHOR
Laura Dew
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