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Govt ‘vindicated’ by ABC FOFA fact check

Senator Mathias Cormann has welcomed the ABC’s description of shadow treasurer Chris Bowen as a “scaremongerer” for making misleading statements about the proposed FOFA amendments.

Yesterday the ABC published a post on its FactCheck website, rejecting Mr Bowen’s comments on the government’s proposed amendments to the FOFA legislation, explaining that the proposals “do not bring back old-style commissions” despite statements from the shadow treasurer to the contrary.

Speaking to ifa, the finance minister and acting assistant treasurer said the ABC’s publication of its verdict makes the government feel “vindicated”, given the groundswell of misinformation surrounding the proposed FOFA changes.

“We have always said that Labor was engaged in dishonest scaremongering when it comes to the important and necessary improvements to Australia’s financial advice laws that we’ve put forward,” Senator Cormann said.

“There is no doubt that Labor’s FOFA changes in government went too far and have to be corrected. Labor’s FOFA imposed too much unnecessary and costly red tape hurting consumers by pushing up the cost of advice and lessening competition in the financial advice market.”

The minister reiterated the government’s aim to “restore a more appropriate balance between important consumer protection provisions and making sure access to high quality advice remains available and affordable for all”, despite Labor’s “false assertions” about removing a fiduciary duty or re-introducing commissions.