The SMSF association will work with professional accounting bodies and the Financial Planning Association to lobby policy makers to rethink the advisory framework that separates strategic advice from product advice, the association’s CEO said. , John Maroney, to attendees over breakfast prior to the opening of the annual group conference on the Gold Coast.
Maroney pointed out that the limited exclusion from licensing the accounting profession “hasn’t worked very well” because clients who seek advice do not want to be limited by regulations in terms of the advice they receive from their professional. of confidence.
“We should have the capacity to provide strategic advice [to be given by] highly skilled, highly ethical and highly skilled people, but it shouldn’t be done through all the trickery of SOA [statements of advice]Moroney said at a panel discussion at a BT Thought Leadership Breakfast alongside Rice Warner’s Michael Rice, Investment Trend’s Michael Blomfield and Challenger’s Jeremy Cooper.
“The whole framework has to change and I believe it, and more and more voices are supporting it,” said Maroney. He added that the supreme body of the SMSF industry had coordinated a lobbying effort with the three accounting bodies and the FPA to rethink the advisory policy framework to separate strategic advice from product advice.
Maroney confirmed with Professional planner he works with representatives of the three accounting bodies – Chartered Accountants of Australia, Institute of Chartered Accountants and Institute of Public Accountants – to gain recognition that strategic advice does not fall under the definition of general advice and products, and to have it recognized by legislators.
“We are trying to get people to recognize that the current system is broken, that it does not work. It is neither accessible nor affordable, ”he said.
“I think until we recognize that the current system does not work for most Australians and that something better needs to be put in place, it will not be possible to go the way forward,” he said. he declared.
Maroney’s comments also highlighted the challenges associated with getting decision-makers to step back and examine the entire advisory framework at a time when the Treasury is busy implementing the recommendations of the Royal Commission to Hayne.
“It actually requires work with the government, with regulators, and it will take time because we are still implementing reforms that have taken the last 5 years to arrive, with FASEA, with an education superior and ethical standards, ”he noted.
“I don’t have the solution to deploy today, we are working with other groups on this,” added Maroney.
Senator Jane Hume, Minister of Pensions, Financial Services and Financial Technology, spoke at the opening session of the conference on Wednesday; During her speech, Hume referred to the time Maroney and representatives of the SMSF Association spent with her and Morrison government staff discussing policy in this area.
“You probably need to introduce a different form of financial advice, different from product-oriented advice,” Maroney said. “We think the world has changed from the idea of financial advice to product advice, it’s a 20 year old idea.”
“Look at other sectors of society, we’re not repeating 20-year-old paradigms about what advice means, the cars you drive, the Internet you use; so I think there is a recognition that there is a real role for strategic advice separate from product advice, which needs to be clearly defined what that means, ”he said.