Speaking at the FSC conference in Cairns yesterday, the former financial services minister said Labor will “not just forget” about its FOFA reforms but will continue to fight for its original reform agenda in the future.
“We will oppose the repeal of FOFA legislation when it finally comes before the parliament,” Mr Bowen said.
“We will continue to argue for the principles of FOFA. It is these principles that will guide the policy that we will take to the next election.”
At the same time, Mr Bowen pledged to continue engaging with industry and consumer groups – including the FSC – over coming years, claiming his side of politics “share[s] the objective of increasing Australian investor access to better quality and affordable advice”.
He also anticipated that another financial advice-related collapse would result in “much more radical change” being proposed than FOFA.
In a doorstop interview with journalists following his address, the shadow treasurer rejected the government’s claim that it took the FOFA amendment agenda to the last election and that is therefore had a mandate from the people to repeal parts of the legislation.
“I don’t think what they’ve done is reflected in what they took to the election,” he said.
The government’s “shambolic” decision to implement parts of its amendment agenda via regulation – as opposed to legislation – has further undermined consumer trust in the sector, he added.
Mr Bowen also paid tribute to outgoing FSC chief executive John Brogden and took thinly-veiled swipe at Assistant Treasurer Mathias Cormann, who was unable to attend the conference due to cabinet commitments.
“I give you this pledge: if we do win the next federal election, I’ll be back to speak to you again as Treasurer,” he said.
“I don’t see the FSC as an organisation to be duchessed in opposition and ignored in government – I’ll not only speak to you but will continue to consult with you, because the FSC has an important voice to bring to the debate and discussions on our economy.”
Lets add more and more compliance requirements that take more time to complete and hope somehow that magically makes advice more affordable. Seem intelligent? Idiot
Mr Bowen – while your at it, why don’t you announce the re-introduction of all Labor’s other failed policies. The Mineral Tax and the Carbon Tax spring to mind. At least then we could be confident that you and your cronies will never be voted into power again.
[ Any retail financial advisor who votes for liberal ought to have their heads read for living in such conflict![/quote]
Edward. Your comments make no sense as on the one hand you are saying what is the point of having Opt-In agreement and then criticise planners who vote Liberal due to some misconceived conflict of interest. I gather you are not a planner and therefore have not had to jump through more and more and more hoops as pushed by the Union and ISF influenced former (thank goodness) Labor Govt. May they rest forever where they belong.[/quote]
Im certain he meant to write labor, Edward obviously is a planner and a busy one.
#20 – Sorry people that comment regarding the vote is supposed to read “Labor” not Liberal.
[quote name=”Edward”]Here we go again! The only reason they want to repeal FOFA is to save the embarrassment of what the Liberals did with it and make it harder for retail advisers to do business against the ISF network, who are the biggest donators to Labor coffers! How on earth is forcing customers to sign some opt-in piece of paper going to improve the quality of advice given at the outset of the relationship? Any retail financial advisor who votes for liberal ought to have their heads read for living in such conflict![/quote]
Edward. Your comments make no sense as on the one hand you are saying what is the point of having Opt-In agreement and then criticise planners who vote Liberal due to some misconceived conflict of interest. I gather you are not a planner and therefore have not had to jump through more and more and more hoops as pushed by the Union and ISF influenced former (thank goodness) Labor Govt. May they rest forever where they belong.
Here we go again! The only reason they want to repeal FOFA is to save the embarrassment of what the Liberals did with it and make it harder for retail advisers to do business against the ISF network, who are the biggest donators to Labor coffers! How on earth is forcing customers to sign some opt-in piece of paper going to improve the quality of advice given at the outset of the relationship? Any retail financial advisor who votes for liberal ought to have their heads read for living in such conflict!
In years gone by I always kept a neutral view on governments in this country because I thought at heart all sides loved Australia & only wanted the best for all Australians. Clearly this is no longer the case. LABOR is so intent on becoming the minority opposition party in this country! Clearly we should all do everything in our power to make sure they never lead this country again. When a party only represents unions then they can get used to being only voted for by the minority that belong to them. Any party that burns it’s grass roots needs a long time in opposition. Lets grant them their wish!
Its about Labor, Unions and Industry Super Funds
The biggest Bermuda Triangle of your money Ralph
Remember Vic Labor, Trico, Pyramid
Ecomonics and Govts always repeat
Labor facilitated ( by there mismanagement)the theft of $200,000 of my father in Laws govt super fund benefit in the early 90’s Thanks to Treasurer Rob
Keep Labors hands and their trademark mismanagement OFF our money
They are not interested in the advice industry they want to destroy it
History repeats Only on a much bigger scale with Unionists running this country under Labor
God Help us
Small Business can only cope so much
We just are able to pay our staff and 6 figures in TAX
Its just gone too far
[quote name=”Steve c”]Chris Bowen can kiss my vote goodbye. Clearly labor doesn’t want the finance industry to vote for them anymore. DONE!![/quote]
Chris Bowen can kiss mine as well![quote name=”Steve c”]Chris Bowen can kiss my vote goodbye. Clearly labor doesn’t want the finance industry to vote for them anymore. DONE!![/quote]
I met with our professional indemnity insurance underwriter the other day, he said ‘why would anyone want to be a financial planner!’
If anyone has increased their fees to cover the time that its taken to absorb the miriad of proposed, ammended and amended amendments that have taken place, and then to implement, and un implement these changes in your business, let me know!
The government is protecting the community from ‘financial planners’, whose protecting financial planners from the government, and how is any of this making financial planning more accessable for your average Austrailian!
God help this country is Bowen ever comes in as treasurer and Bill the Union man becomes PM. We really will become a banana republic then. Bowen has no idea. Will be interesting to see what the investigation into the union movement turns up in regard to Industry Super Funds.
Both Bill Shorten and Chris “The Scaremongerer” Bowen need to be silent.
It is simply unbelievable that these people who made such an absolute shambolic mess of running the country previously,can have the audacity and front to lecture anyone about the best way to manage this matter, let alone continue to cause unrest and promote distrust of advice to the community and to string it out for as long as they possibly can in order to hoodwink voters they are “in there batting for them”.
It is just political games and mileage from an opposition that is an utter disgrace now and was an utter disgrace as a government.
What Chris Bowen is hoping for is another financial collapse or similar so he can then use it as another excuse to de-rail the FOFA process.
Chris Bowen must go to sleep every night listening to a recording that is on continuous play saying “Storm Financial….now say it after me”.
What a joke.Totally destructive and no substance.
Chris Bowen can kiss my vote goodbye. Clearly labor doesn’t want the finance industry to vote for them anymore. DONE!!
You never here Bowen or the labor party discuss the service industries (such as financial planning ) as the source of employment and economic growth. It is all about costs reductions and supporting the unions rather than making them accountable. Ironic really – the supporters of the people who are prepared to destroy job creation opportunities to support their fat cat industry mates fat salaries.
1. Lobby group (in this case Industry Super Funds)lobby politicians for the reforms they want, and justify with “public interest” arguments.
2. Politicians cite “public interest” arguments to win votes as a champion of the people.
3. Politician retires and sits on Industry Fund or Union Board(s) for extra retirement spending.
The End!
p.s. “watch what they do, not what they say!”: Former Nixon adviser
Bowen – bring transparency of all fees to the table, including those that the ISA funds charge behind the scenes that their members are never made aware of. This should include a breakdown of the fees the ISA funds allow per member to subsidise (by their own admission) the planning fees (which is restricted & conflicted) that only some members utilise, but is spread across all members. While we are at it, to be the altruistic public interest activist that you claim (nauseously hypocritical) why don’t you also push for ‘Opt in’ to include the ISA funds which entails non reply/consent for those members to automatically roll across to a non ISA MySuper fund?
The sooner the current Gov can get a cathartic colonic irrigational inquiry into the whole ISA/super fund industry, the better!!
Chris Bowen obviously does just not understand the issues. “his side of politics share[s] the objective of increasing Australian investor access to better quality and affordable advice” Wow, this is the opposite of the outcome of the legislation. Just ask a financial planner – costs have only gone up!
FDS’s and Opt In… great cost savers.
Yep do that and loose another election
Looks like the Labor Party is continuing to support it mates at the Union Run Super funds. This will likely to result in attract the continuing opposition by the self employed Financial Planning Practices that have to deal with Labor’s costly red tape.
Mr Bowen should look at other issues rather than targeting Financial Planners with draconian FOFA amendments. We all know how Mr Shorten favours the Industry Union Funds over private retail funds and how he as Superannuation minister gave them an unfair advantage over others. If Mr Bowen wants to regulate – he should look at Doctors, Accountants with niche schemes, Real Estate Agents, Recruitment Consultants, etc. etc. He should also at the same time look at the disaster that Labour left us with – from the NBN to the Pink Batts, Gonski, billions in disability, higher Medicare, no private insurance rebate, and so on. Let’s hope Mr Bowen to be re-elected will be a pipe dream…….
I recall going to a FOFA hearing a while back. The Government rep was asked to explain how these reforms would bring Financial Planning to the masses who cant afford it if it bans the dealer commissions, which currently pay for those services that the client cant afford.
The Govt Rep said “cant they just put it on their credit card?” which was followed by raucous laughter!
This Labor obsession with commissions is back-to-front. They just dont get it!
Stop using FOFA as some kind of contest to win votes. All you are creating is a constantly changing landscape where neither the consumer or adviser benefits.
Seriously Mr Bowen, there are real problems in the world, and the minor changes to FOFA by the CURRENT government to make the legislation workable are not those problems.
Oh and by the way, one of the real problems is affordable access to advice, which your government Is AGAINST by implementing ridiculous, over-the-top and costly policies.