Speaking to press on the sidelines of the AFA national conference on the Gold Coast today, Ms O’Dwyer said that while the Turnbull government supports the corporate regulator’s enforcement activity, it is ready and willing to hear the case for reform of section 923A of the Corporations Act to expand the definition.
“We believe its important that those who hold themselves out to be independent are genuinely independent and we support ASIC’s work on that front,” Ms O’Dwyer said.
“Where changes are required we will always be open to listening to industry, we look forward to having that discussion and I’m sure that will be one of the topics.”
In June, the corporate regulator issued a shock clarification of the act, explaining that advisers and licensees who do not meet the existing definition of independent financial advice will no longer be able to describe themselves as “independently-owned” or “non-aligned”.
A number of lobbying efforts are currently underway seeking reform of s923A. In August, the AIOFP and former regulatory investigator Brett Walker released a white paper making the case for reform.
This has always been about protecting the big end of town in financial planning services. Smaller IFA’s( will this term/name still be allowed???) just don’t have the lunch budget or focus to get to the Politicians and bureaucrats like ASIC to understand. They still confuse financial advice with product flogging so there is very little hope in the short to medium term for any significant change.
Exactly Garth, O’Dwyer and her Institutional backing cronies will always protect the dodgy Banks and Insurance companies.
It’s a simply fix O’Dwyer – make the bank owned adviser and myriad of dealer groups they hide behind PROMINENTLY display their true bank ownership on their websites, cards and front page of SoA’s.
Chance of O’Dwyer doing anything against her NAB and bank buddies is zero and this is a pathetic pitch to say they are open to lobbying for change – B### S### !!
Do current independent practices then get a new name? Cant argue that there isn’t a difference between independently owned and actual independence and not taking commissions etc.
We probably should all just give up and join AMP now..
Independently owned or non aligned needs clarification? Is Ms O Dwyer for real ? The English language surely is clear on this point. NOT aligned to any bank or financial institution or industry fund is surely in the best interests of the client. These fools we have as political swill are once again really trying to ensure that there will and always be aligned advice businesses. These will be those who subscribe to a bank, life office or industry fund. So can Ms O Dwyer explain herself on this point as to why we must tow the line and cannot allow the use of the word independent or non aligned?
As advisers, we are obliged to act in the best interest of the client. Put their interest first. Non aligned advisers and independent advisers are perfect for this. But this flies in the face of industry funds, life offices and banks who in the pursuit of sales and sales targets and profit, they would seek to lobby government to bring about a bad outcome for the consumer. Ms O Dwyer on behalf of the Liberals and for that matter the Labor Party have clearly demonstrated that they are not fit to govern in the interest of the consumer. and could not care less for the adviser.
This is a terrible outcome for IFA’s that are seeking to place their client first and have shown conviction for their beliefs by moving to an independent or non aligned platform.
The motive shown by the Minister and the level of contempt shown by both sides of politics is a disaster that has long term consequences for the consumer who despite scandal after scandal by the institutions such as banks, life offices and industry funds, continue to bestow havoc on the industry and the consumer.
So with less commission for risk from January 1, more compliance for all and now this nonsense where even trying to represent yourself as a non aligned adviser so that you are seen in a better light by your client is the final nail in the advice coffin. Is this right …really ?
As advisers, I implore the AFA and FPA to take a long look at themselves. Only this time do stand up for the adviser and not your puppet masters that are the very organisations that are destroying our industry and the advisers you each pupport to represent. This is yet another display of sickening behaviour by government on behalf of these organisations. AFA & FPA…..where are you ?
The slap in the face is to have the Minister herself at an industry conference state the destructive plans for the industry….even if you try to do the right thing by your client and act in their best interest as law prescribes !!!
Before we get excited, I want an explanation of “industry ” as used by Ms O’Dwyer. Who will she consult. Just the banks, like last time !
Well said Anon, thank you for enunciating so well the case for clients and advisers. Well may you ask where are the AFA and FPA. I would ask where are the damn life offices when we needed then to champion our cause against 2 year chargebacks and significant commission cuts. They want advisers gone, we all know that so why they can’t come out and just say it I don’t know – at least we’d be able to make plans with some certainty. Thanks again for your great words above – I hope the people making our new educational an compliance laws – the idiot [b]unqualified [/b][i][/i]pollies, glorified and [b]unqualified [/b][i][/i]govt clerks and duplicitous life companies – read every word you’ve written!
keep up the pressure the IFA, this is a terrible outcome for advisers andn clients