Labor misued FOS data to push for Royal Commission
The Labor Opposition has selectively and wrongly used data from the Financial Ombudsman Service spanning from 2008 to 2009 and 2014 to 2015 to pursue its own agenda for a Royal Commission into the banking sector, according to the Federal Government.
The Minister for Revenue and Financial Services, Kelly O'Dwyer, accused the Opposition of conveniently ommitting figures which showed that complaints to FOS had peaked in 2011-12, when Bill Shorten was the Minister for Financial Services and Superannuation.
"Since this peak under Labor, the number of FOS disputes has in fact fallen by 11 per cent," O'Dwyer said.
"Labor was in government for six years, they opposed our review of the financial system, and less than 12 months ago voted against a Royal Commission," she said.
She added that in May an independent review was announced to investigate the financial system's external dispute resolution and complaints framework.
This would include examining the Financial Ombudsman Service, the Superannuation Complaints Tribunal, and the Credit and Investments Ombudsman.
"We are bolstering the Australian Securities and Investments Commission (ASIC), with $121 million to enhance its powers and surveillance capabilities. This will better enable ASIC to combat misconduct in Australia's financial services industry and improve customer confidence."
"The Turnbull government is working to improve the financial services sector. In comparison, the opposition is peddling mistruths and missing key information to suit their political agenda," she added.
AUTHOR
Oksana Patron
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
