PUP support ensures FOFA reform regulations stand
Support from the Palmer United Party (PUP) has ensured a move by the Australian Labor Party to disallow the Government's changes to Future of Financial Advice (FOFA) regulations failed in the Senate.
The Minister for Finance and acting Assistant Treasurer, Senator Mathias Cormann, told the Senate that he had reached an agreement with Clive Palmer, PUP leader, to support the regulations.
Senator Cormann said the Government's reforms would ensure Australians benefit from greater competition in the financial advice industry.
As part of the deal struck with the PUP the Government has pledged to legislate to ensure that advisors act in the best interest of the client, and give clients the right to change their instructions to their advisors, within the next 90 days.
However, Labor Senator Sam Dastyari said the crossbench senators had been "sold a pup", adding that the PUP senators had "chosen to protect the voices of Commonwealth Bank, Macquarie Bank and the wealthiest Australians".
"The interests of dodgy financial planners are those this Government choses to protect," he said.
"There is going to be another collapse. There is going to be another scandal."
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
