The major financial planning industry groups have been left in short-term limbo by the ascension of Malcolm Turnbull to the Prime Ministership because doubt now hangs over the senior incumbents in both the Treasury and Finance portfolios.
The Treasurer, Joe Hockey is believed a virtually certain casualty of the change of leadership and a question mark is hanging over the future of Assistant Treasurer, Josh Frydenberg, who publicly threw his support behind former Prime Minister, Tony Abbott.
Also in question is the future of another highly visible Abbott loyalist, Finance Minister, Senator Mathias Cormann.
Further confusing the issue is that former Assistant Treasurer and chief of staff to former Prime Minister, John Howard, Senator Arthur Sinodinos, has emerged as a key Turnbull backer with strong claims to return to the Cabinet.
Both the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have acknowledged the uncertainty generated by the changes in Canberra with factors such as the Life Insurance Framework, the Government’s response to the Financial Systems Inquiry (FSI) and the finding of the Parliamentary Joint Committee still yet to be decided.
AFA chief executive, Brad Fox said it would simply be a case of waiting to see who would ultimately be handling the various portfolio functions and then seeking to work through the issues with the new incumbents.
“But I do question how this might impact the implementation timetable for the Life Insurance Framework,” he said.
FPA chief executive, Mark Rantall, said that there were significant policy issues still in play but it would be a case of waiting to see the final shape of the new ministry.
Prime Minister Turnbull last night said that ministers would be asked to continue in their existing portfolios, with an announcement on the shape of the new Cabinet likely to be made at the weekend.
