Calls for review of bank guarantee
Chris Pearce, the Shadow Minister for Financial Services, Superannuation and Corporate Law, continues to criticise the Government’s bank guarantee, and has called on the Government to provide industry with answers around certain aspects of the guarantee and its effect on the market.
Pearce said the guarantee was rushed, poorly executed and had “significantly distorted” the Australian financial system. He said some of the effects of the guarantee included an undermining of formerly stable and reliable investments and the hampering of state fundraising efforts.
Pearce said in light of this situation, the ongoing necessity of the guarantee must be reviewed, as should the cost to the economy resulting from the distortion.
Pearce said now that the “bungled” guarantee had come into effect, “the most pressing concern is that the key questions surrounding the distortion caused by the guarantee remain unanswered and unresolved”.
Furthermore, Pearce criticised the fact that there was as yet no plan for the phasing out of the guarantee at the end of its three-year duration.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
