Election causes financial services uncertainty

AMP Capital Investors chief economist Shane Oliver has warned of continuing market uncertainty being generated by the outcome of Saturday’s Federal Election and the prospect of a hung parliament.

Oliver said that the investor uncertainty was not only caused by the uncertainty surrounding the election outcome, but also by renewed concerns about the global economic outlook.

“Uncertainty over the election outcome as to who will govern, fears of a possible drift towards less business-friendly policies reflecting the increased power of the Greens, worries about less decisive policy making and a likely absence of productivity boosting longer term reforms under a minority government will likely add to jitters in the Australian share market and the Australian dollar in the week ahead,” he said.

This week’s edition of Money Management reveals the degree to which a range of policies impacting the financial planning industry have been affected by the hung Parliament and the uncertainty surrounding which parties will ultimately form Government.

Most at risk in the current uncertainty is the proposed lifting of the superannuation guarantee to 12 per cent and the degree to which there will ultimately be movement around the Government’s Future of Financial Advice reforms.

It now seems unlikely that there will be any move to extend a ban on commissions to the insurance sector.