Cormann points to industry funds vested interest
The former Labor Government had been "egged on" by vested interests to impose many of the changes contained in its ultimate Future of Financial Advice (FOFA) legislation, according to the Minister for Financial Services and Acting Assistant Treasurer, Senator Mathias Cormann.
Defending the Abbott Government's changes to the FOFA legislation and making a direct reference to the influence of the industry superannuation funds, Cormann said the former Government had been "egged on" by "a segment in the financial services market that had a vested commercial interest in Labor making it more difficult for their competitors to provide services to people across Australia".
He said that it was in these circumstances that it was in the national interest and the public interest for the Abbott Government to "rebalance" that outcome.
Speaking earlier on national radio, Cormann said he had been concerned about the level of vested interest pushing misinformation in order to scare people into believing things that were not true.
"…This is an area which is very technical in nature. It is very easy for vested interests, vested commercial interests and indeed people with political motivations, to scare people without properly presenting the facts," the minister said.
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