Speaking to ifa ahead of the announcement of a deal between the two major parties to make minor changes to the FOFA legislation – including on the crucial issue of grandfathered commissions – Labor financial services spokesperson and MP for Oxley Bernie Ripoll said this consensus could have been reached a long time ago.
“The government chose a complicated and difficult path to getting its changes through ie. through ministerial edict or regulations, which was a disallowable instrument,” Mr Ripoll said.
“Our view is that where we can agree we ought to move as quickly as possible.
“The reality is that we could have done this six months ago had we had a willing partner – the crash through, all or nothing approach is no way to treat the financial services sector.”
The shadow minister said Labor is committed to the original FOFA legislation implemented by the previous government, but that it understood the need to act on grandfathering especially in order to allow free movement of trade in the financial services industry.
“We want to ensure there is no jeopardy for advisers in terms of the work they do,” he said.
The AFA issued a statement welcoming the move and reflecting on lobbying efforts in the week since the fateful disallowance motion passed through the Senate.
“Following the disallowance last week, we sought urgent action from both the government and the opposition in order to deliver a solution to grandfathering which would address the reduction in competition and the inability of a client to choose their financial adviser,” said AFA CEO Brad Fox.
“To see the issue resolved in this way reflects a sensible bi-partisan approach and we appreciate the efforts of both the minister and shadow minister in moving so quickly given the circumstances,” he said.
That’s right Craig…it would be a highly risky decision to give your money to the HSU. Maybe Craig Thomson and Kathy Jackson could be the trustees ?
Lets not worry about the comparative fees….if you don’t have any money left, it is going to be very hard for them to charge a fee!
The UNION SPUER funds will have the adds ready to go… ” have you not had contact with your adviser in teh past month ? no are you paying fees ? then switch to your buddies in Union Super ! Backing the ACTU, CFMEU, HSU etc etc since 1999
Joe, the answer is simple:
Become a member of the AFA, an organisation with a longstanding and ingrained philosophy of supporting the voice of advisers.
If you haven’t previously been a member, you may be pleasantly surprised of the cultural differences.
In regard to Bernie Ripoll’s comments, he has been a continuous and staunch critic of advisers and the advice process for ever, so they are worth nothing. He is simply seeking publicity in order to appear he is engaged.
To be quoted as saying that he “wants to ensure there is no jeopardy for advisers in terms of the work they do”, is laughable.
If he were serious in his comments, he would be fully supporting the proposed FOFA amendments and letting common sense prevail over this entire matter, not just pieces of it.
What a lot of crap from the mouths of non practicing industry mouth pieces errecting stockades of conformity in an indusrty where they have nothing at risk themselves, other than perhaps their career.
None of this garbage would have protected the clients of Storm ( CBA ) the actual customers of the CBA more recently or any of the product failures that have stripped hundreds of millions of dollars away from investors who relied on the scrutiny, reputation and diligence of the auditors, the ratings agencies and the banks themselves.
It’s just absolute window dressing which will damage the ability to deliver quality advice at a reasonable cost.
Labor will not drop this. One of the key Labor men said to me the other day that Libs only want to reverse FOFA because they know that the industry funds are our (Labors)funding machine. We all knew it, but I was amazed that he articulated it. No conflict there!!!
Thats funny Ripoll and his moronic buddies are the oners that brought this rubbish in. It is a bit rich for himm to say the Libs should have fixed his stuffup sooner.
Joe, the only reason anyone is a member of the FPA is to maintain their CFP!
That is a joke. Minister Ripoll has been unwilling to meet with or alter his view in any way shape or form and has remained firmly of the ‘same’ ideological position irrespective of the common sense arguments put to him over the years by many hard working planners in the Brisbane area. Its a joke that now the government has been defeated by the numbers to make the suggestion that Minister Cormann was wrong to try and bring some common sense amendments to the FOFA regs. Politicians using a smokescreen of consumerism while caring little about the reality for 000’s of small business operators and their clientele is the real problem here.
Well done to Brad Fox & the AFA for actually doing something!
Pity the FPA was nowhere to be seen… Not even a statement on their website.
Is it pure co-incidence that now that our leading industry advocate is in bed with our biggest threat & the major driver of FOFA, that our representation has dropped off???
I for one have cancelled my FPA subscription and question why any FP would want to be a member.
Labour should accept that it is not the government of the day. The FOFA rollback was an election policy and the Abbott government has a mandate to implement.