After a lengthy debate in the Senate today about whether or not the FOFA disallowance motion should be voted on this afternoon, the upper house ultimately upheld the motion 33 votes to 31.
Senator Dastyari said that the opposition and government should now go “back to the drawing board” and will take a “facilitative” approach to the issue.
ASIC will be taking a measured approach to FOFA compliance in coming months, Mr Dastyari said.
The vote effectively means that the lobbying efforts of the financial services associations and Coalition have not been successful and Labor’s original FOFA laws will stand.
Meanwhile, Coalition Senator Eric Abetz said the disallowance motion will have a “devastating effect” on financial advisers, arguing the industry should have been given more notice.
“You would think common decency and common sense would require that this industry would be given more than 12 or 24 hours’ notice of a disallowance,” Mr Abetz said.
Senator Abetz described the change in policy positions by Senators Lambie and Muir as a “stunt…to ensure that the government’s program is derailed”.
When will direct marketing to the public be looked at – They say all these changes are for consumer protection but us advisers wanting to actually wanting to ensure a consumer is protected correctly are being attacked while people simply offering a transaction and not looking at a clients situation or their best interests are not looked at – leaves me concerned!
All I can say is industry super funds will be partying tonight. They and the their buddy’s the labour part have had a win. I hope now the government conducts an investigation into Industry super funds and that they are required to comply with the same rules that the rest of the industry has to.
Remember money and future job opportunities speaks all languages !
I think you’re all preaching to the converted. As an industry, we need to make a concerted effort in educating the greater public on exactly why FOFA, in it’s original form, works against the individuals it’s suppose to protect. One quick look at the comments section of smh.com.au proves this has been lost to the greater masses. The general public are not aware this is leading to increased advice costs for the consumer and further industry consolidation into the big banks and FP firms. Further, the uncertainty over the past 3 years are merely compounding these problems.
Paul Keating was right. The Senate are unrepresentative swill as both Lambie and Muir got into the Senate on first round votes of less than 2000. They both have no idea of the consequences to the consumer of their ill advised vote on the disallowance motion.When are Labour going to accept they lost the election and let the Coalition govern for the majority who voted for them. Nick Xenophon has only ever had one persons interests at heart and that is his own. This is a disgraceful day in Australian politics when the government is trying to reduce red tape for business. FPA time to act.
Oh Dear. Given the enormous costs of adhering to this red tape surely the Australian people deserve a better explanation than a blanket statement to say these changes are needed for consumer protection. How ? At what cost ? Why hasn’t direct marketing to the public been addressed for consumer protection ? Why hasn’t the ICAC revelations into industry super fund corruption also been taken into account ? Where is the accountability for these senators ? How on earth can they argue that they are acting in the best interests of the community in the absence of any meaningful explanation and insight into the financial planning industry ?
Wow ……. We just saw stupidity at its best.
And poor old Muir and Lambie think they are serving the community well by reversing these measures. I have no idea how these measures increase consumer protection? What a great example of red tape with no added protection to the community.
As of Monday our firm will be introducing the Lambie Levy to clients accounts.
And here’s some consumer protection for you – go and assess AustralianSupers new TPD definition. Just watch that screw families over when they are at most need of help.
Like most things that are great – they soon to sh-t when the ill-advised minority pipe up and meddle in something they know nothing about. I am so angry (and disappointed) with how bad this decision is for the people out there that really need our help – its simply best I not vent it right now.
Congratulations though to the educated voters out there that voted this trash into our parliament. If you ever needed proof your vote counts – this is it.
Pretty telling that people who live this industry every day are posting comments at this time. I’m really sad to call myself Australian today when this farce happens with OUR elected!!! And we criticise china. Check pit the posts saying how wonderful lambie is & this is great day for democracy.
Whatever just sort it out, give everyone 12 months to comply, I am over it just want to rum my business and give my client’s the best advice I can
Where is Ms Lambie acting in the best interest of anyone?Causing uncertainty, additional costs to business and the regulator and an unreasonable expectation.
The end result of the regulations passed earlier this year gave the industry a workable solution and the regulator something they can monitor against.
Well I have seen it all ! What an absolute disgrace Lambie I spoke to your staff at length today and they think you are a disgrace so there you have it.
You got into power on the back of one of the richest men in Australia and now with your ill thought out vote you are about to heap pain on to decent people. You are a goose and we will look back on your time in politics and hopefully learn that this with little understanding but a massive ego have to be watched as the damage you will do is there for a long time Lambie I will make sure that you will not forget this poor decision. FPA it’s time to act !
again a true indication of the self serving nature of our politicians and their complete lack of respect, understanding and care for the small business community in Australia. Jacqui Lambie you are a disgrace.
Thanks for pineappleing my business. I’m independent & now up the creek. Love fact lambie can’t break promise to Clive Palmer but easily reneg on this promise.
Woohoo. I was going to try to help clients with their financial affairs, but hey, I can get stuck wasting time on paperwork instead.