Shorten's 'vested interest' undermines FOFA
The Federal Opposition has accused Assistant Treasurer Bill Shorten of jeopardising necessary reform of the financial services industry by sacrificing genuine need to the vested interests of union-backed industry superannuation funds.
The opposition spokesman on financial services, Senator Mathias Cormann, said Shorten was continuing to target small businesses and financial services competing with his friends in industry superannuation funds instead of pursuing a balanced policy in the public interest.
Commenting on the release this week of the first draft of the Future of Financial Advice (FOFA) legislation, Cormann said a number of key features of the bill would unnecessarily increase costs and red tape for consumers and business for questionable consumer protection benefit.
"Bill Shorten's approach to FOFA appears conflicted and unbalanced," he said.
Cormann said while the Coalition supported reforms to financial services which increased transparency, competition, and consumer choice such as a statutory best interests duty, it did not support opt-in.
"With the best interest duty in place, appropriate transparency of fees charged, and an ongoing capacity for clients of financial advisers to opt out, there is adequate consumer protection without the need to impose additional red tape," he said.
AUTHOR
Mike Taylor
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.
