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Tuesday, 24 November 2015
Page: 8727


Senator CORMANN (Western AustraliaMinister for Finance and Deputy Leader of the Government in the Senate) (12:51): Unless you have a specific inquiry, there were many unintended consequences. I will give you one example. It relates to the way FoFA treats basic insurance products and non-cash payments. Essentially what we are proposing to do here is ensure that FoFA treats basic insurance products and non-cash payments consistently with other simple and well-understood financial products. There was an unintended consequence that the application of the previous FoFA regime went too far, and that is now widely accepted.

It also clarifies the intrafund advice provision to ensure it operates as originally intended and not in the broader way, essentially to avoid unintended consequences here too. It makes clear that the client pays exemption; it also applies in circumstances where benefit is paid by another party, as long as the payment is made out of the client's funds and the benefit is given at the direction of the client and with the client's clear consent.

So this is essentially a tidy-up bill, which I would have thought was pretty uncontentious.

The TEMPORARY CHAIRMAN ( Senator Ketter ): The question is that the following amendments be agreed to: (1), (6) and (7), (11), (13) and (14), (16) to (18), (21) and (22), and (24) to (28) on sheet GU108.

Question agreed to.

The TEMPORARY CHAIRMAN: The next question to be considered is that items 1A to 1J, 3 to 11, 13 to 15, 17 to 20, 24 to 27, 30 to 32, 36 to 40, and sections 1531AA and 1531F in item 43 of schedule 1 stand as printed.

Question negatived.

The TEMPORARY CHAIRMAN: Are there any other amendments to consider? As there appear to be none, the question now is that the bill, as amended, be agreed to. Senator Whish-Wilson?