Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Labor Senators reject governments Future of Financial Advice legislation



Download PDFDownload PDF

SENATOR MARK BISHOP

DEPUTY CHAIR SENATE ECONOMICS LEGISLATION COMMITTEE SENATOR FOR WESTERN AUSTRALIA

THE HON BERNIE RIPOLL MP SHADOW MINISTER FOR FINANCIAL SERVICES & SUPERANNUATION MEMBER FOR OXLEY

MEDIA RELEASE

LABOR SENATORS REJECT GOVERNMENTS FUTURE OF FINANCIAL ADVICE LEGISLATION

Labor members of the Senate Economics Legislation Committee have rejected the Government’s legislation to significantly weaken Labor’s Future of Financial Advice reforms.

In their dissenting report to the Corporations Amendment(Streamlining of Future of Financial Advice) Bill 2014 Labor Senators note that the Bill in its current form is beyond repair and should be opposed.

These concerns can best be echoed by Ms Josephine Root from The Council of the Ageing who told the Committee:

“We believe the cumulative effect of these changes is to seriously weaken the reforms, giving less consumer protections and ultimately undermining confidence in the financial advice sector.”

Committee Hansard - Page 66

The recommendations of the majority report are little more than a piecemeal attempt to fix the language not the essential problem of a Bill that weakens consumer protections and a reintroduces banned conflicted remuneration.

Labor believes it is irresponsible for any government to make changes that evidence to the committee suggests could cost consumers an estimated half a billion dollars annually.

Labor Senators have listened to concerns raised by the Financial Planning Association and others about the confusion that members of the public face when seeking financial advice and have recommended the Government move to restrict the use of the terms ‘financial planner’ and ‘financial adviser’, as well as recommending the Government legislate to change the term ‘general advice’ to ‘general information’.

If the Government wishes to proceed with minor and/or technical changes that facilitate industry compliance with the original FoFA reforms, then it should enter into good faith discussions with all stakeholders, and all parliamentary political parties.

TUESDAY, 16 JUNE 2014