In a document outlining its political strategy for the upcoming election – where the adviser body has pledged to mobilise against Coalition MPs in marginal seats – the AIOFP stated that “some members have advised they will be boycotting any manufacturers who appoint former minister Kelly O’Dwyer to their board or management for her past handling and decision making within our industry”.
“The advice industry does not have any confidence in Ms O’Dywer due to her lack of support for advisers while she was the financial services minister,” AIOFP executive director Peter Johnston said.
“Members are having difficulties with understanding how a person who is responsible for structuring and advocating the failed LIF and FASEA legislation, that has caused catastrophic financial damage to the advice industry including numerous job losses and mental health problems, can be rewarded with prime industry roles.
“It just does not seem fair and reasonable to many members and they want to do something about it.”
Ms O’Dwyer has landed a spate of board appointments in the financial services industry recently, joining investment banking start-up Barrenjoey Capital Partners as a director as well as being elevated to the board of Equity Trustees and commercial property group HomeCo.
She was responsible for overseeing some of the most sweeping reforms to financial services including the establishment of FASEA and AFCA, the 2017 super changes and the passage of LIF legislation through Parliament, and retired from politics in 2019 amid polling that showed she could be in danger of losing her Victorian seat of Higgins.
The potential boycott forms part of a broader campaign on behalf of the adviser association to register its displeasure with the Coalition at the ballot box in the coming federal election, which Labor has suggested could be held early next year.
“With around 20,000 advisers with 200 clients each, the circa 4 million voters over 18 years represent 20 per cent of the Australian voting community – a significant number even by half,” the AIOFP said.
“Every adviser needs to engage with their clients to inform them of why the cost of advice has escalated over the past five years and the distinct possibility of the banks making a comeback into the advice market with digital solutions. Issues that cost consumers money and are linked to banks behaving badly are powerful divisive political messages we can capitalise on.”
It is our ethical duty to ensure that our clients funds are not exposed to the incompetent and destructive governance of O Dwyer, given how catastrophic we know it can be. This is particularly important for us to do for our clients as EQT provides RE services. Advisers should be writing to every single fund manager that EQT has involvement with as responsible entity. Get the PDS out for all of your funds and you will see extensive involvement from EQT in various funds management structures. EQT provides responsible entity services extensively (Allan gray, partners group, robeco , bnp , Colchester, cooper, GQG, MFS, pan tribal, SGH, T.Rowe, L1 capital, AXA IM, flinders, neuberger Berman, quest, tribeca, nanuk to name a few) and O Dwyer with her total and utter incompetence is now a director of the business that provides that crucial role to protect consumers, there is a clear nexus between her governance and those fund managers now. She has demonstrably shown herself to be incompetent’s and she has no business being involved even indirectly with EQT given the services they provide, what a totally stupid and ignorant board appointment this is by them, get your quotas elsewhere. The way to approach this is to advise your fund manager BDM (with an EQT RE) that you will no longer be recommending their products on this basis alone and removal from the APL (of self licensed) is imminent, guilty by association, a rule o Dwyer lived by herself. Once all of their precious FUM starts to become threatened they will no doubt start engaging with EQT who might want to think again about this misguided and idiotic appointment . EQT are everywhere, you just need to look under the hood. The same goes for barrenjoey, who is a Magellan affiliate, time to hit the phones and let your BDM know that its the end of the road between your firm and Magellan, advise you will be replacing them with the like for like QUAL ETF at a third of the cost and with superior performance, best part is that it is better for the client anyway, will look great in a ROA slashing a fee by 2/3rds for better performance. This is how you powerfully VOTE WITH YOUR FEET.
This is a case of better the devil you know. Labor will absolutely destroy the financial advice industry in order to direct 100% of flows to industry super and insurance options. Sadly our elected officials are required to make life-changing decisions when they’re not fully informed. They then land plum board positions for their political sway and are perceived as industry experts.
If you try to damage ex-politicians you will get any existing politician so badly offside you can’t imagine, and you won’t know why they will do anything to destroy you.
Anybody who thinks Labor will be better doesn’t seem to understand that Labor is deeply involved with industry funds who would not mind at all to be rid of a big amount of competition. Did you read Stephen Jones article in another industry publication? That should tell you all you need to know about the alternative.
If we can’t come to an arrangement with the current government we are toast. Labor will just toss us in the garbage bin.
We could make it very hard for ex-politicians when they get their post parliament board positions. That would be the ultimate payback.
The liberals have shown themselves to be the party of big business.. big banks in fact
Fact are
1) the Liberals pushed the Banks out of Superannuation
2) Liberals with Scott Morrison have increased Industry Super FUM more than any other Government ever. Don’t under estimate Scott Morrison as Treasury and PM. He is obviously a Labor man – Libs just don’t know it.
I am in and will boycott her for sure! I am in WA and a marginal LIBERAL seat. I am telling all my clients what they have done to advisers and how it is impacting our fees and work levels. On top of that, we booed Morrison at the footy 2 weeks ago when he showed up at an Eagles game and Mark McGowan the Labour premier is loved by this state it would seem so I have to say based on WA alone, Morrison, Josh and Jane are going to be in opposition for sure next year if they call the election in 2021 or 2022!!!
Please remember the ALP excluded risk commissions from being banned and grandfathered the trailing revenue, they could not possibly be any where near as bad as Team Frydenberg…..Liberal pollies are trying to muddy the waters with blaming the ALP for their past actions, dont fall for it.
And then we get Labor and Bill Shorten who introduced FOFA and put together what one prominent law firm described as ‘the worst piece of legislation they have ever seen’. That mob started the mess and the gutless Coalition have just perpetuated it.
long live investment commissions hey?! I detested FOFA at the time, but it was what the industry needed (bar FDSs)
Actually FOFA was fine and likely should have gone further and included commissions in FDS.
The LNP have been an utter disaster for 8 years.
Hard to see Labor doing any worse.
FOFA that gave us statements of advice and banned brokers from charging brokerage to retail clients and dropped an extra 25 bips into the P&L of the CMA providers and gave us opt in etc etc. Yep it was just what the industry needed to get rid of its retail clients.
Be careful what you wish for.
Be very careful indeed here.
I wish to be continually stabbed in the back by LNP, ODWyer, Frydenberg and ASIC.
Disgusting, self serving bureaucrats that all have to go.
It was not really her fault. After all FASEA did follow several submissions by the FPA. Consider the FPA submission that the meaning of a degree should be a Bachelor of Financial Planning approved by the FPA owned FPEC body and past degrees and prior learning be worth 20 points out of 100. How is that her fault? So many advisers join industry associations that act for someone else, or like the FPA has multiple competing interests and get upset when the outcome dosen’t meet their expectations. Thankfully we’re starting to see bodies like the AIOFP that acts only for advisers.
Not sure if you’re getting confused due to senility Old Bob, or if you are deliberately lying to try and boost the AIOFP. But your claims about the FPA are untrue.
OMG OMG ..wtf moment..? !!
obviously the boards have no sense either…..
Count me in. This is where all the ineptitude started in the first place. The problem that remains, however, is that Ms O’Dwyer’s disaster still hasn’t been cleaned up yet.
These appointments for KO’D must surely be bcoz the companies must (think they) need to meet gender quotas, because it certainly cannot be based on merit or that she adds some value because of her extraordinary performance as a federal minister – can it?
AOIFP is on the money. Financial advisers are going to turn savagely on the Coalition at the next election. As they say, we have influence on around 20% of the population and that doesn’t even count friends and family. If even a fraction of financial advisers rise up, it would be enough to turn an election. Labor won’t be any better, but spending some time in opposition will be good for bozo’s like Hume and Frydenberg. Maybe they will wake up and start listening.
Agree with everything Peter says. Nevertheless, a Labor Government would likely nail home the removal of insurance commissions and put further restrictions around the industry. Not a lot of choice unfortunately.
Over Bloody Complicated O’Dwyer was a wrecking ball to Advisers.
I totally agree and our Advisers under our AFSL would NEVER use a product that O’Dwyer is related too in any way.
LNP, Frydenberg, O’Dwyer and Hume have decimated many small businesses and Advisers and need to be shown the same respect.
LNP, Frydenberg and Hume – Fix these Gordian Knot REGS problems you have created over last 8 years or GO !!!!!!!!!!