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."
