Finance minister Mathias Cormann yesterday announced that if the government’s negotiations with the micro-party and Palmer United Party senators are not successful, then he may consider broadening the bans implicit in the FOFA reforms to the industry super fund sector.
Senator Cormann said the carve-out for industry funds on opt-in and retrospective fee disclosure requirements – secured in what Senator Cormann described as a “special deal” struck with former financial services minister Bill Shorten – may be terminated in the “interest of competitive neutrality”.
“This is not a threat but a likely consequence of any decision by the Senate to reject our decision to cut unnecessary and costly red tape which pushes up the cost of advice for investors without proportionate improvements in consumer protections,” Senator Cormann said.
“Our preferred course of action is if opt-In and retrospective fee disclosure are scrapped altogether, but if the Senate decides that they should stay, then I think they should stay for everyone providing and charging for advice on the same basis.”
Senator Cormann added, however, that he was looking forward to the negotiations and to the interest taken in the issue by the new Senate members.
Regardless of what the senate decides, shouldn’t the industry be a level playing field? Disclosure is largely the essence of this debate according to David Whitley so why shouldn’t the same rules apply to them including how much the industry funds pay to unions as dividends each year? what benefits flow to ultimately to political parties, subsidiaries etc. Granted the CBA situation is disgraceful but let’s not forget there’s a Royal Commission going on at the moment that’s highlighting a lot of similar problems from their end. Shouldn’t everyone who doesn’t vote Labour be entitled to disclosure for any industry funds they have to ensure their protection?
About B****Y time. Cant wait to hear screams of how unfair and unnecessary it is for the unions and their spruiker Bill Shorten.