Stephen Jones’ Financial Advice Reform Leaves Young Australians Stuck Without Debt, Housing Advice, Michelle Levy Warns

Financial Planners

Jones said the superfund was created because getting financial advice after retirement is more important than at any other age, but Levy lashed out at the proposal on Monday. bottom.

“Waiting until retirement age is too late,” she says.

“It’s certainly an important time to get advice, but as people move through their professional lives, getting more advice will be a better decision.

“In an ideal world, your first job would give you advice, and the pension fund you join would give you advice on how to manage your debt and how to save for your car and home.”

It will also help people be “better positioned” when they retire, he said, improving financial literacy and making it less likely to be abused.

Mr. Levy said consumers were “frustrated” by the lack of advice on these subjects, even though “banks and insurers should be able to answer them.”

“The current government response promises nothing to help with that.

Some of the recommendations that were rejected in the review were taken by more financial institutions, such as exempting digital advisors from their obligation to act in the best interests of their clients and instead requiring them to “offer appropriate advice.” It was intended to enable them to advise their customers.

Mr Jones said last week he was open to adopting some reforms aimed at banks and insurance companies, but he was skeptical of the need for such reforms and the necessary trust these firms had lost at the Hayne Royal Commission. He said he was still unconvinced if he got it back.

He said the Superannuation Fund is an exception, as it acts in the best financial interests of its members, is already subject to legal obligations for its sole purpose, and is not liable for improper advice. said it provided adequate consumer protection.

already well protected

But Ms Levy also denied the allegations, saying other agencies were already subject to strict obligations under consumer and business law.

“They don’t have an obligation to act in the best interests of their members, but they do have an obligation to act efficiently, fairly and honestly. I don’t know how that’s different,” she said. rice field.

“These blanket obligations apply to banks, insurance companies, fund managers and superfund trustees, in addition to many consumer protection laws.”

He also suggested Superfunds may not benefit as much from the reform proposals as it is unclear what will actually change.

In a speech last week, Mr. Jones promised to improve his ability to advise funds, but there is no legislative change that would allow this.

“I quietly suspect that little will change … if anything, I am afraid that the expectations of me as a superfund trustee will increase.” [than other financial institutions] I thought about what I should do for my members, even though I am no more capable of giving advice than I am now. “

He also said that while Labor has followed the recommendation to remove the burdensome paperwork obligations for traditional financial advisers, “it’s not entirely clear what will replace it”.

Mr Jones plans to further discuss further changes to financial advice as part of the fifth round of talks on these reforms.

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