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FOFA cannot ‘prevent financial collapse’: Sinodinos

Assistant Treasurer Arthur Sinodinos has responded to media coverage of the amendments to FOFA, explaining that “no amount of regulation” can avoid financial collapse.

In a statement issued yesterday, Senator Sinodinos referenced “recent media coverage” that pointed to the case of Storm Financial as an example of why the existing FOFA legislation is needed, arguing that it is misguided to think government intervention can avert collapses.

“Let's be clear: no amount of regulation can prevent another financial collapse as you can never regulate away all risk,” the assistant treasurer said.

"Neither our reforms nor the existing FOFA laws can prevent a possible future financial collapse."

The government will be introducing a Bill to amend FOFA, in line with its pre-election commitment, in coming weeks, Mr Sinodinos said.