In a statement issued yesterday, Senator Sinodinos referenced “recent media coverage” that pointed to the case of Storm Financial as an example of why the existing FOFA legislation is needed, arguing that it is misguided to think government intervention can avert collapses.
“Let’s be clear: no amount of regulation can prevent another financial collapse as you can never regulate away all risk,” the assistant treasurer said.
“Neither our reforms nor the existing FOFA laws can prevent a possible future financial collapse.”
The government will be introducing a Bill to amend FOFA, in line with its pre-election commitment, in coming weeks, Mr Sinodinos said.
Storm occurred on the previous government’s “watch” not the current governments. Realistically governments the world over are unable to prevent commercial failure. The senator is merely correcting what currently lacks clarity and application in FOFA. If memory serves me correctly the constituents were doing very nicely back in 2006 receiving the advice. Unfortunately with the change of government in 2007, disasters followed! Storm was but one.