In the context of this verse, the account shows that Jesus was reacting to the rejection of His teaching by the Pharisees (compare verse 14). In Luke 16:13, Jesus concluded a parable with this admonition, “‘…You cannot serve God and mammon’”—a statement that challenged the Pharisaical practices!
Continuing in Luke 16:15-16:
“And He said to them, ‘You are those who justify yourselves before men, but God knows your hearts. For what is highly esteemed among men is an abomination in the sight of God.
“‘The law and the prophets were until John. Since that time the kingdom of God has been preached, and everyone is pressing into it.’”
Now specifically, in the first part of Luke 16:16, Jesus states, “‘The law and the prophets were until John.’” His comment is about how God was represented to men—especially, to those of Israel, and even more directly to the House of Judah. However, the Jews of that time were not even following the law of God or paying attention to what the prophets of God taught. Jesus continued His teaching with another parable, and note the poignant indictment of this lesson:
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