In a recent communication to members, AIOFP executive director Peter Johnston said the association found it “offensive” that ex-financial services minister Kelly O’Dwyer, who had recently been appointed to the board of Equity Trustees as well as investment banking group Barrenjoey, was “drawing an income” from the beleaguered advice sector.
“As we all know, Kelly O’Dwyer was not helpful to the advice industry during her tenure of being our financial services minister,” Mr Johnston said.
“We find it rather offensive that O’Dwyer is now drawing an income from our industry, particularly after the billion-dollar damages caused by the LIF and FASEA legislation she championed.”
After canvassing member opinions around a possible boycott last month, Mr Johnston said the AIOFP would put pressure on fund managers doing business with its members to drop Equity Trustees as a trustee service provider.
A note provided as a template for members to distribute to relevant fund managers read, “Dear –, we note that former minister Kelly O’Dwyer is now a director of Equity Trustees and we are unhappy with this outcome.
“O’Dywer was not supportive of the advice industry during her ministerial tenure and was responsible for the failed LIF and FASEA legislation that has had profound effects on the industry.
“We are requesting that you convey our position to Equity Trustees and give consideration to changing the trustee arrangements of the fund unless the matter is rectified. We look forward to your response and action in due course.”
The news comes following the AIOFP’s broader campaign to mobilise its members against Coalition MPs in marginal seats at the coming federal election, in retaliation for the impact of increasing regulation on the industry.
Mr Johnston said it was “ironic” that the government was moving to disband FASEA but had not so far addressed problems with its standards framework, while it was trying to “hide” equally serious problems with the LIF legislation until after the election by rolling the review of the laws into its 2022 Quality of Advice Review.
“We want to send a message to this government that the advice community is very unhappy with their past eight years of action and injustice against us,” he said.
Great work Peter Johnston- Keep the pressure up on these useless politicians
Pretty torn on this.
O’Dwyer did her best to run the industry into the ground in favor of the banks through the FSC… Shes the last people I would want in such a position as this.
However, the other side of me just says we should all suck it up and focus on doing a good job. Yes its crap, but this is how politics works… Do whatever you need to get a cushy job on the other side.
Just not sure what AET are thinking really.
That really gives some insight into the lack of professionalism present at the AIOFP. Behaving like a Union.
The AIOFP wanted all advisers to join the Labour Union – Financial Services Union was it.?
Compared to the FPA?
Thanks for commenting Kelly
Good point
Agreed! Also suspect advisers that are making this call are not meeting BID requirements as EQT are RE for over half the funds offered in Australia.
Lets not forget the unbelievable financial damage the LIF has caused existing risk customers. Anyone responsible for this should never be allowed to hold a responsible position in the financial services industry again.
Or the damage caused to customers caused by Jack Flader, Trio?Asterra with assistance of Peter Johnston and multiple AIOFP member firms. We haven’t forgotten your quotes Peter.
Childish and petty. Professionals don’t use their clients as leverage to further their personal vendettas.
…and smart people don’t use their power to cause devastation to an industry, and then expect to work in that industry without repercussions. PS. Don’t be naïve, other professions would act no differently if they were treated like us
Don’t know who she is, or what she did or does. I just focus on my clients and my business. Maybe more of y’all should to?
Don’t know who she is? Are you serious?? What spaceship did you just get off?
Like previous comments – don’t be naïve.
Part of the nightmare process you are working through today is because of this very soul. If you’re knowledgeable about your industry as you want readers to think you are, then you should definitely know about the carnage she’s inflicted and how she very much deserves this action.
I only look forwards. My business has moved past all of the “nightmare” you are working through. Perhaps because I spend my time working on my business and for my clients instead of reading about the careers of people who no longer have any future bearing on me or my practice.
Very true.
wowsers…what a petty low act by AIOFP. Maybe they are feeling inadequate bc they didnt have the pull to influence the Gov or didnt even try. She was elected, so you expect she was acting on behalf of the public, whether you like it or not. The Libs did what labor and the ABC made them do e.g the royal commission. Labor would have gone to town to a much larger extent.
you are totally wrong!! O’Dwyer was in the pocket of the FSC and M. Perkovich (CBA financial planning scandal queen and Count disaster). We all know what Labour would do to push more money into their mates Industry Funds BUT these MASSIVE industry killing mistakes coming from a Liberal is unforgivable.
We need leaders with some balls willing to fight back,
If you don’t stand for something then you will fall for anything.
Most of the damage she did was acting on behalf of the FSC against the interests of the public, and it preceded the Royal Commission.
I am not an AIOFP member (dumb acronym!) and generally disagree with PJ on most things but this time 100% support this campaign. O’Dwyer was not only incompetent but also damaged too many livelihoods of a large number of exceptionally decent people in the FP profession.
We have a number of recent clients referred to us to set up PAF’s or need assistance with managing estate trusts and one court ordered trust, which ET was originally in the ring of our considerations, but now will definitely have an extra mark against them in the ‘cons’ column under corporate stewardship concerns.
This is bad.
The number of supportive comments of an action that is professional suicide is very concerning. So is how few of those who disagree chose to comment.
We have a long way to go.
Absolute nonsense. Do you think doctors would support a pharmaceutical company if one of their leaders had a history of damaging the medical profession and hurting patients with higher costs and less access to the support they needed? The answer is NO. If their drug was the only suitable option for their patient, of course they would prescribe it. But in most cases there are a range of similar choices and the offending company would be shunned. I worked in the field. Doctors (like other professionals) are human beings, just like us. The Code of Ethics does not turn us into robots and wipe out any thoughts about the big picture. If we had decent representation, this sort of action wouldn’t be needed. But we don’t, so we must use any measures we can to push back on the oppressive and destructive behaviour of our politicians and regulators.
Actually its great that finally someone is starting to stand up for us. So what if some of the arrows miss the target, at least we are finally finding a voice. A voice that the fpa and afa should have had a long time ago. Sick of the cowards in this industry, the yes people that live off membership fees, they are why we are where we are at now.
Hitting them in the AUM is the only way advisers can win in this toxic environment.
Id like to see that SOA
She is a complete disaster area, just like Frydenspend & Hume. Where do they find these people?
in the sewer
It does seem strange that Kelly applied for the job in the first place. Everyone is entitled to earn a salary, but perhaps a different industry would have been more appropriate.
In who’s interest is avoiding EQT? Will be interesting to see how AIOFP members “confect” how it is client best interests to avoid a fund manager, just because of who they appoint to the board. We are struggling to emerge as a profession but this action by the AIOFP puts us back on the path. EQT are not going to walk back on appointing O’Dwyer as a result of this campaign, so here’s some advice, for the sake of our emerging profession, stop it !
For the sake of our Profession the LNP & ASIC need to be told to STOP IT.
The last 8 years of LNP strangulation by mass over regulation must STOP !!!!!!!!
The last 22 years the LNP have been in power 75% of the time. Over this time it has been an ever increasing over regulatory red tape burden.
Let’s make Advice more Affordable they say = Monthly new Red Tape REGS and Red Tape costs. STOP IT !!!!!!!!!!
Yes, it is just revenge or you can use an even stronger word starting with vin.
Professions don’t engage in revenge as that is against their own and their clients’ interests.
Avoiding EQT is easily justified to clients on the basis of ESG concerns Steve. O’Dwyer facilitated a dodgy collusive outcome for her FSC friends, which never would have been allowed by the ACCC. It delivered a very poor outcome for consumers, and was done from a position of supposed public trust and responsibility. Having someone like O’Dwyer on their Board raises serious social & governance concerns about EQT. Becoming more professional involves taking a stand against people like O’Dwyer who abuse public office. If EQT is thinking of appointing Eddie Obeid to their board, professional advisers should push back against that too.
This response is hilarious… ESG???? Love to see that stand up in court…
“emerging profession”? Not sure if you’ve noticed, but political actions like those inflicted on this industry by O’Dwyer have assured me that this industry is far from being an “emerging profession”. Bogged down by academic ‘hippy world’ compliance and regulation on the other hand would be true.
One third of advisers have now left with another third expected to leave in the next few years. Those ‘juniors’ entering now are also quickly realising how much of a basketcase this industry has become with almost 70% of them now doing an about face and heading out. Hardly an “emerging profession”. I used to love what I do….I hate it now thanks to people like O’Dwyer.
This is a conflict of interest. You cannot be referee, then player, then referee, then player. That is not ethical. Do any sports codes allow it? The politician is still a politician, even if she has left Parliament. She has friends and influence in her party. She could even return to Parliament, if enough voters go stupid.
you can be whatever you want. what are you on about.
Please, only if you have been a politician
Boo hoo!
You think the Coalition wasn’t supportive? Wait until you see the alternative. Short memories.
This is simply stupid grandstanding. Someone trying to remain relevant perhaps?
Does absolutely nothing to enhance the reputation of our profession.
I thought dinosaurs were extinct!
Dinosaurs are extinct. Shooting yourself in the foot is alive and well.
If you are referring to the AIOFP, mate at least they stand for something unlike the FPA and AFA and their conflicted ways of kicking advisers including those naive to come up with comments like this. Wake up as the FPA and AFA are playing you for a fool….
I agree this is an appalling campaign. I would also like to know how I can write a letter of support to Kelly O’Dwyer.
When will the AIOFP get over itself, stop looking backwards and embrace the new better world of professional financial planners and proactively help its members embrace that world.
“I would also like to know how I can write a letter of support to Kelly O’Dwyer.” Why would she care what you think?
…a world were no advisers exist, all advice is owned by a bank controlled robot….??
identify all the funds where EQT is a RE or Trustee and write to fund managers expressing your displeasure…who are the managers and lets send a message??
The list was on Peter’s email to members
O’Dwyer was a failure as a Minister. One can only presume that they have employed her for her contacts in the government…..as it certainly wouldnt be on merit….
How do we write a letter of support for O’Dwyer?
This is a disgusting campaign and will create huge trouble for financial advisers.
“You are not serious are you”…..how will it create this huge trouble????
What do you think the current minister will think and do when she finds out?
What will she do?
Hopefully consider her future job prospects instead of thinking she will simple slide into a new cozy position earning $500k for some robo tech advice services business business which specialises in crypto for the masses as well
She will make sure she endears herself so she will at least have a job post-politics…
How will she find out? Is it on Tik Tok?
More trouble than you caused yourself Kelly?
It is a great campaign.
‘Disgusting campaign’….’huge trouble for financial advisers’, well that’s how I would describe what O’Dwyer did to our profession frankly. I didn’t mind the idea of FASEA, but what was she thinking by stacking the board with a bunch of people who have ZERO idea about financial advice? If it was majority experienced, practicing financial advisers, the outcome would have been much better. Jane Hume will be next unless something dramatic changes.
“How do we write a letter of support for O’Dwyer?” I’m sure you can find someone who can help you.
Good to see positive action from our industry
absolute joke roll out of any of these funds today
It is important that all advisers and AFSLs participate in this, not just AIOFP members, identify all the funds where EQT is a RE or Trustee and write to fund managers expressing your displeasure