financial advice, Legislation

QAR bill needs rapid action

QAR Quality of Advice Review recommendations legislation

The bill to implement Quality of Advice Review recommendations needs to progress rapidly through parliament if the changes are to be of any benefit to the advice sector.

The federal government must move quickly to ensure proposed changes to fee renewal and consent arrangements have any benefit for advisers, with draft legislation to implement the Quality of Advice Review (QAR) recommendations needing to be in place by the end of the year, according to the SMSF Association (SMSFA).

Responding to the release of the draft Treasury Laws Amendment (2024 Measures No 1) Bill 2024, which will implement 11 of the 22 QAR recommendations, the SMSFA called on members to provide comments on the draft legislation while noting what was absent from it.

“Whilst the simplification of statements of advice have not been included in this tranche of reforms, proposed changes to fee renewal and consent arrangements and flexibility on how financial services guides requirements are met are the focus of this package,” the association said.

“Legislative relief is urgently needed in advance of the end of financial year if the measures on fees are to have any immediate benefit.”

Currently, there are only six more sitting days for both houses of parliament in 2023 and a further three days on which only the upper house will be in session, and consultation on the draft bill will close on 6 December, the day before the last sitting day of both houses.

The SMSFA has welcomed the government’s plans to implement the 11 recommendations contained in the draft bill, but noted the final QAR report overlooked the role of accountants in providing advice.

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