The Federal Labor Opposition will seek to initiate a further Senate committee inquiry into the financial planning industry, this time to look more specifically at events within the Commonwealth Bank's financial planning businesses.
Media reports out of Canberra are suggesting that the Federal Opposition leader, Bill Shorten, will announce Labor's intentions to move for such a Senate Committee approach with the backing of the Greens and cross-benchers, including the Palmer United Party Senators.
Shorten was, as Minister for Financial Services in the Rudd and Gillard Governments, the substantial author of the Future of Financial Advice (FOFA) legislation and the Opposition has been backing Industry Super Australia (ISA) in opposing the Government's changes to the FOFA legislation.
According to the media reports, the Opposition will move for a further Senate inquiry on the basis that the Government has not moved quickly enough to respond to the 61 recommendations contained in the report of the Senate Committee inquiring into the performance of the Australian Securities and Investments Commission (ASIC) and its handling of the Commonwealth Financial Planning enforceable undertaking.
The Commonwealth Bank late last week announced an extended compensation program for clients affected by the events which led to the enforceable undertaking and the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, has signalled the Government will be monitoring the effectiveness of that process.
In the meantime, the Financial Planning Association (FPA) has called for a national summit to be convened to discuss the Senate Committee recommendations.
