On Friday, Mr Robert delivered an update on some of the key legislation that is going to impact financial advisers, including the Life Insurance Framework (LIF) and professional standards reforms – the latter of which will be introduced into Parliament on Wednesday.
Following his address, one delegate commented that the changes will soon put advisers under significant financial pressure, with other reforms proposing that advisers pay for ASIC as part of a user-pays funding model; pay for a new dispute resolution tribunal; and, ultimately, pay to fund an education standards-setting body on an ongoing basis.
This is all in addition to rising professional indemnity (PI) insurance costs and falling revenue, the delegate said. He asked the MP when the government planned to start listening to the “real people”, and not the big institutions.
Mr Robert, however, responded by saying all legislation is a compromise.
“Is it a compromise? Yes. Is it perfect for all parties? No; a compromise never is. Are there costs and change involved? Yes. But that is why the timeline is there: to allow organisations in the industry to adjust,” he said.
“There is no perfect response. There are always going to be people who aren’t happy.”
Another delegate asked Mr Robert why the government has not gone after superannuation funds and the potentially conflicted “bonuses” they receive from group insurance.
Mr Robert agreed that this may be a conflict, and said he will “have a look at it”.
Finally, Mr Robert was asked why the government has not taken any sort of initiative on the issue of vertical integration.
“It wasn’t in financial services reviews or from ASIC as a major source of contention. If it’s not raised, it generally will not be looked at,” Mr Roberts responded.
“Vertical integration in any market is fine as long as there is widespread competition. The question should have been is there enough competition, and I am not too sure.”
Obviously Stuart Robert, was the fall guy for Kelly O’Dwyer
I totally Agree with the comments in the article and how the ASIC is becoming an Elite organisation who is being encouraged at all levels to misuse the authority granted to them by the Australian taxpayers. Their waste of taxpayers funds and selective investigations are well documented in the Senate Enquiry into the ASIC. The training is all inclusive and does not appear to differentiate between financial planners and stockbrokers. The majority of major breaches and complaints are against Financial Planners and in particular Bank related, not stockbrokers. Yet stockbrokers are being asked to meet the same costs and all financial service providers are constantly being considered guilty until proven innocent. The culture of the ASIC is being corrupted and educated to over authoritarianism similar to the German Stasi Police. Time to reign them in and Re Educate them in a more conciliatory attitude and not waste funds on actions that have not been attempted to settle in a proper commercial and respective manner