Financial services industry had too much influence over Liberals
The financial services industry has, in the past, had too much influence over the Liberal Party and industry superannuation funds have too much influence over the Labor Party today, according to NSW Liberal Party Senator, Andrew Bragg.
In doing so, Bragg conceded that Liberal politicians had been wrong to resist the Future of Financial Advice (FoFA) changes and the calling of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Participating in an online debate sponsored by the Association of Superannuation Funds of Australia (ASFA), Bragg sought to defend his position on superannuation by claiming that it was independently arrived at and was not the product of external influences.
In doing so, Bragg suggested that the Australian Labor Party (ALP) was wrong in defending the manner in which industry superannuation funds had been prepared to fund media outlets such as The New Daily and advertising campaigns undertaken by Industry Super Australia (ISA).
He claimed such funding represented a breach of the sole purpose test.
Bragg was participating in the ASFA debate facing Australian Labor Party backbencher, Dr Daniel Mulino.
Recommended for you
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.