Speaking on behalf of “ordinary Australians” at the parliamentary hearing on the oversight of ASIC, the senator claimed too many advisers are “ripping off their fellow Australians”.
To an objective observer, her comments seemed to suggest professional, licensed advisers were at the centre of the loss of superannuation savings through schemes such as First Guardian and Shield.
When chair Joe Longo interjected, noting that most financial advisers “do the right thing”, O’Neill raised her voice, emphasising that “there’s enough there who are looking at a very lucrative business model by ripping off their fellow Australians”.
O’Neill elaborated on the trust Australians place in advisers: “There’s a lot of talk about financial advisers and they put a lot of effort into talking to all of us. And there is an assumption that they are professionals and that they will do the right thing.”
Longo, appearing visibly uncomfortable, urged O’Neill not to “demonise all advisers”.
She responded by reiterating her concerns, saying bluntly: “There is enough there to be concerning.”
The ASIC chair added that “there is a lot of blame to go around here” in an attempt to shift the conversation towards superannuation trustees, who, he said, were “hosting a number of managed investment schemes that are high-risk products”.
However, Longo did not get far, interrupted by an impassioned O’Neill again, who insisted they “stick with the financial advisers”.
“My goal at the end of today is, with this august group of people who are here representing Australians is to have no doubt in the public place that if you fill in a form online, and you get a phone call from somebody, you do not move your superannuation,” she said.
Deputy chair Court too came to advisers’ defence, attempting to explain to O’Neill that “there are obviously a lot of good financial advisers out there”.
The message to Australians, she said, should be “if you’re thinking of moving your superannuation, get independent financial advice”.
“And that’s where this was different,” Court said of First Guardian and Shield, adding that “these advisers were all connected in the chain” – meaning they had a close relationship to the telemarketers and the funds they were promoting.
Court continued, attempting to explain to O’Neill that ASIC relies on the associations, such as the Financial Advice Association Australia, to “refer the bad apples to us”.
“We need them out on the ground, because they see what has happened as a result of these issues,” she said.
Attempting to move on to the funds in question, Court, like Longo, was cut off by O’Neill, who steered the conversation back to advisers.
The scenes that played out at the hearing – including O’Neill’s repeated attempts to bring the conversation back to advisers – were interpreted by ifa to portray her determination to keep scrutiny squarely on the profession.
Her demonstrative behaviour almost overshadowed a number of important admissions made by Longo, who disclosed that ASIC is looking at funds beyond First Guardian and Shield and that the actual number of wronged Australians could be as high as 30,000.
Court also disclosed that the corporate regulator is “in the process of looking at” 140 advisers.
“Twenty of those have already had court action, 50 of them are current investigations, and 70 more we have on the list,” she said.
More to come.
Disgusting performance.
I’d invite Senator O’Neill to visit our practice in semi-regional Australia and see the benefit we make to the community.
It is about time the adviser community went to war with the ALP. I suspect if we don’t, we may not exist in the future.
I agree with O’Neill. One adviser ripping off their clients is too many.
We are not the victims here. The people who are losing their life savings are. It’s amazing that this needs to be said.
The advisors who recommended these products are responsible. Pure and simple.
I agree one politician or bureaucrat ripping off Australians is too many, yet they are never held to account.
Let’s just blame advisers only yet again and let the :
– MIS fraud & failure,
– MIS auditors,
– Super Trustees,
– research houses, and
– useless Regulators
All walk away with zero blame.
You make zero sense.
Step up and improve. Be good at your job. These products had zero track record or credibility yet the person the client expected to be knowledgeable and professional put 100% of every new clients money into them.
It is indefensable.
I think the point here, is this was a handful of bad advisers – there are over 15,000 good advisers who do what they do because they care and want to help people, they are typically underpaid if running their own business, they are stressed and yet they are constantly the one to blame for the small minority who do the wrong thing. What is the difference with your line of thinking, to the bad doctor who hurts/kills their patient? are all doctors bad now?!
If the FAAA/AIOFP doesn’t address Senator O’Neill’s comments and demand a retraction and apology why should anyone continue to pay their membership fees.
Damn right – it’s about time we stand up to people like this!
A bit rich from a politican who’s integrity comes into question, when she didn’t declare paid for Air tickets by get this the Inter-Parliamentary Alliance on China, so as to go to an IPAC conference in Washington.
Wow, this woman should not be in a position to question anything if she doesn’t understand what’s happening.
I wonder if they looked into the legal “profession” they would come up with the conclusion that they aren’t ripping off Australians?
Nope, they would dare go after them. Our toothless FPA et al has let this industry down for years and now look at the mess we’re in.
O’Neill’s attitude and obvious bias is absolutely disgraceful.
She is obviously desperate for attention and any form of relevence.
If she’s concerned about consumers being coerced or influenced into switching their superannuation then why doesn’t she have the courage to recommend an in depth assessment of the vertically integrated and conflicted Industry Super funds that will only EVER recommend their own product because they are paid by that product.
We know why she wont because the rivers of gold that flow to the Labor Party every single year from re-directed funds through Industry Super donations and Directors electing to funnel their payments through Labor Party associated entities is the cash cow that cannot be tampered with.
O’Neill’s vitriolic and uneducated attack is pathetic at best.
She obviously has little understanding of the real world entirely.
If Deb O’Neill wants to take this approach, then lets challenge her about the ethics of politicians, including those from the ALP who represented the people of the Central Coast of NSW (something pretty close to home for her). Maybe we could use the example of former ALP MP Craig Thompson (https://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=HVZ), who was recently back in court pleading guilty and described as a serial fraudster. If she wants to play that game of blaming everyone for the conduct of a few, then others can do exactly the same thing.
Clearly by her comments, she has been told to make those comments by her financial backers, the unionised super funds to yet again make our professional lives problematic.
Everyone knows and expects politicians to be self-serving. These scumbags tell porkies and take advantage of lucrative positions after they leave office.
Financial advisers are expected to be above that. (And, 99.87% of us are).
Senator Deborah O’Neill it’s so refreshing to see a person in politics who has zero idea, to be fair Longo with his comment on super access at age 70 is absurd- the top dog doesn’t know preservation age? he has the internet. Self serving narcissists only seeking to sow division. No different to FAAA
are you really suprised here? The Interprac Venture Egg and Co disaster has brought immeasurable harm and damage to us all and fails all the hard work and effort done to lift the professional and perception of our industry.
Senator O’Neill did that good a job as a local member that she got kicked out the first chance her electorate got. She then ended up in the Senate through a back door deal based upon factions, which is how all senators get there in the two major parties. Realistically I shouldn’t care what she has to say but she has a pulpit from which to announce her belief’s even though they are wrong so it has an impact on professionals that she doesn’t know. Hopefully karma comes back and kicks her where it is deserved.
This is very illuminating about the real agenda of union thugs like Deborah O’Neill, who ultimately control both the parliamentary Labor Party and union (“Industry”) super funds.
Perhaps this is why Stephen Jones achieved absolutely nothing in 3 years, and why Daniel Mulino will probably be similarly constrained.
Politicians have too much free reign. There’s enough [politicians] there who are looking at a very lucrative [career succession models] by ripping off their fellow Australians through [political donations and brown paper bags].
And conflicted laws and rulings to feather their own nest post politics in cushie Industry Super Fund director and trustee roles.
That’s some serious hide from Senator O’Neil.
As for Longo and Court, have any Advisers ever heard ASIC go into bat for us ? That is positive.
This is unbelievable! What about the presumption of innocence, which is a fundamental legal principle.
Making a blanket statement and labeling individuals as ‘crooks’ without looking at the evidence from both sides is just plain reckless.
As a percentage of politicians to advisers to consumers, it would be very clear that more politicians are liars and couldn’t be trusted by Australian consumers. By what absolute qualification, other than newspapers or media reports, is Court qualified to blatantly judge and apportion guilt on advisers as a whole? Perhaps she should reflect on the harm she is doing to the industry and her own truth-telling.
I think you mean o’Neill not Court. O’Neill is completely blinkered and thinks by slamming advisers into one bucket, she will look good to voters. Always a political agenda.
Some lovely slanderous comments from Deborah O’Neill. What she is asserting is that because of the actions of a very small minority (and ones that really should have never been licensed, had ASIC done its job and due diligence properly), all advisers are brandished crooks and ripping off Australians. Nice one! All Doctors, Accountants and Lawyers must also be crooks then, using Deborah O’Neill’s methodology. Time to call out these politicians that run their mouth, ignoring the facts. In the real world they would be sued!
There’s been more than 1 politician found to have had their hands in brown paper bags before. My ex local member was well known for it, both officially and unofficially. Deb also accepts donations from unions that have had their fair share of issues.
Should we expect more from someone who went from the halls of academia to politics? She has no idea of her subject matter, but that doesn’t stop her pontificating.
Perhaps if the rules around the use of the term “independent” weren’t so stringent, more clients would find it easier to achieve the impartial advice that would avoid them falling victim to such arrangements.
As for trying to lay the blame solely at the feet of the advisers, these funds were embezzled by the operators. How is that the fault of the advisers?
Why doesn’t the Senator tell us who funded her party’s election campaign?
Industry Super Funds ?
That would actually be really good. Perhaps she should stand in the senate with labels on the TV screen underneath her name and state showing the ‘donors’.
Absolutely disgusting.
Sort of like saying all politicians are liars and cheats who seek only to feather their own nests
My thoughts exactly.
Pot calling kettle black Senator O’Neil
I would suggest that your comment is much more accurate.