Senator Jane Hume has called on the Labor Party to enable the Financial Adviser Standards and Ethics Authority (FASEA) extension to return to business after a ruling yesterday on listed investment companies.
The Treasury announced the ban on conflicted remuneration to LICs would be extended following a consultation which began in January.
The discussion on LICs had been part of an omnibus bill which included the FASEA education extension.
Responding to the news on Twitter, Hume, who is Assistant Minister for Superannuation, Financial Services and Financial Technology, said financial advisers needed certainty in these turbulent times.
“Labor must now enable the Bill for FASEA education extension to return to non-controversial business, as it was listed before last Monday. At times like this people need advice and financial advisers need certainty.
“Labor conflated two unrelated issues, using the FASEA Bill as a cynical political ploy at the expense of the industry and Australians who need essential financial advice.
“[Shadow Minister for Financial Services] Stephen Jones, stop playing games and allow the Bill to pass as non-controversial business in the next sitting.”
Jones later tweeted saying: “Abbott and Corman created a loophole that allowed commissions to be paid to flow shares in investment companies propped up by junk bonds. Mum and Dad investors lost millions of dollars. I’m pleased Josh Frydenberg has acted to close the loophole.”
