With the Senate Economics Legislation Committee recommending that parliament should pass the government’s Bill amending FOFA, the fate of financial advice regulatory policy is now in the hands of three Palmer United Party senators-elect and three new crossbenchers from the micro-parties.
One of those new crossbenchers, incoming South Australian senator-elect Bob Day of Family First, indicated yesterday that he may be a Coalition ally when the Bill goes to a vote.
“I am generally supportive of the government’s Bill,” Mr Day told ifa, adding that he is a “strong believer in free markets and removing ‘barriers to entry’ to new participants”.
Meanwhile, Liberal Democratic Party senator-elect David Leyonhjelm, also speaking to ifa yesterday, said that while he has been “lobbied on this [issue]” that he has not yet “come to a final position” – indicating there is at least one vote still up for grabs.
At the recent FPA roadshow in Sydney, FPA chief executive Mark Rantall foretold that while a positive report from the senate committee would be welcome, the real task ahead lies with convincing these crossbenchers.
“This government is really going to struggle to get anything through the Senate – we are seeing this with the Budget as well as the mining tax and carbon tax,” Mr Rantall said. “They will get legislation passed in the House of Reps but when it hits the Senate the brakes go on. You need 39 votes in the Senate to get legislation through, the Coalition has 33.”
Mr Rantall said that while Mr Day and Mr Leyonhjelm have expressed support for a number of Coalition policies, these two senators-elect are likely to “go their own way” on a number of items.
“This is the situation we are facing; these are the people we need to talk to,” Mr Rantall said, adding that the FPA would be embarking on a lobbying effort targeted explaining the “value of financial planning” to these new parliamentarians.
I would be more than happy to invite a politician into my practice to see what really happens, however I do not think for a minute they actually care!
Surely an IFA could step up and tell the government EXACTLY how it is and what needs changing in this ridiculous compliance burdened industry? Surely having the FPA line it’s own pockets again by dictating more education is the answer so they can FLOG more courses or memberships is the very last thing this industry needs. I would rather not have a barber saying haircuts are the answer.
I love seeing Bill Shorten tantrum like my 3 year old when something doesn’t go his way. He always has something to say about anything the liberals do, can’t keep busy doing his own thing.