Advice bodies want efficiency, long-term solutions from Mulino

Australia's top advice associations are eagerly anticipating meaningful and swift changes to take place under new financial services minister Daniel Mulino, optimistic that critical reforms in the Compensation Scheme of Last Resort (CSLR) and Delivering Better Financial Outcomes (DBFO) will be prioritised.

Mulino was sworn in as assistant treasurer and minister for financial services on May 13, filling in the position previously held by Stephen Jones.

Mulino's vast experience and academic qualifications, which includes working with the World Bank and the US Federal Reserve and lecturing, look to be a point of difference that make him the ideal candidate.

Neil Macdonald, the chief executive of The Advisers Association (TAA), expects Mulino's deep understanding of economic policy, formal qualifications and experience will help him to prioritise, implement and embed the many changes necessary to address the 'hot mess' inherited by Jones.

This is to create better access for consumers to affordable, cost effective and professional advice, Macdonald said, and urgently implement the recommendations from Michelle Levy's Quality of Advice Review (QAR) in line with their original intent.

Importantly, he said, Mulino must urgently address the issues with the CSLR, which result in unfair and inappropriate allocation of costs to financial advisers, and ultimately increase costs and reduce accessibility of advice for all Australians.

The Financial Advice Association Australia (FAAA) general manager for policy, advocacy and standards Phil Anderson is urging to push through a suite of issues that got held up by the federal election.

"We worked closely with the former minister on both CSLR and DBFO and it would be a shame to waste that hard work. Quick remedies to CSLR and long-term solutions to address DBFO are needed, not just for our members, but all Australians looking to get appropriate financial advice," Anderson said.

The Association of Independently Owned Financial Professionals (AIOFP) executive director Peter Johnston said the association is "exceedingly happy" with the appointment of Mulino.

"We are yet to formerly present our views to the Minister but will be hoping that happens in the near future. We will also be requesting his presence at our August conference on the Gold Coast which is during a non-parliamentary sitting week," he said.

The AIOFP's policy focus in the short term will be on the CSLR, Life Insurance Framework (LIF) and rationalisation of the compliance regime.

"We have been reliably informed that Dr Mulino will avoid the trap of his office staff being infiltrated by Treasury bureaucrats who tend to push their own agenda, this was a critical mistake former minister Jones made that ultimately led to his downfall," he said.

The Institute of Financial Professionals Australia (IFPA) also wants to engage with Mulino at the earliest opportunity.

This is to consult on its priorities: the Division 296 tax, enhancing the affordability and accessibility of financial advice by amending the DBFO reforms, and enabling accountants to provide strategic and structural superannuation advice in relation to their clients' tax affairs.

"We also aim to address issues with the CSLR. More broadly, we are seeking a reduction in unnecessary regulatory burdens, greater efficiency in compliance processes, and policy settings that reflect the unique challenges faced by small and medium-sized enterprises," the IFPA said.

Macdonald said: "We understand that Dr Mulino will have a lot on his agenda, and Stephen Jones has stated that there will be a file on his desk when he moves into the office."

In the interests of time management and efficiency, Macdonald added TAA will meet Mulino with other members of the Joint Associations Working Group (JAWG) "as most of their positions and recommended reforms very closely align with those that we are promoting to ensure consumers have access to affordable quality advice and our members can build sustainable businesses where they are treated fairly and professionally."