The Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 and the Corporations Amendment (Life Insurance Remuneration) Bill 2016 passed the Senate yesterday unanimously and without amendments.
Before the votes, however, Labor Senator Jacinta Collins said these reforms only represent a step in the right direction, and that there is more to be done.
“While Labor supported this bill as a welcome step forward, there is a lot more to be done to resolve the issues surrounding the culture practices and consumer protections in banking and the financial services sector,” she said.
In regard to the professional standards bill, Ms Collins said the public will need to watch closely who the government appoints to the standards-settings body, to be established by 1 July 2017.
“If the government is serious about these reforms, then they need to be people of high calibre and significant experience,” she said.
“The board needs to include people with strong track records of standing up for consumers. The makeup of the board needs to be such that it can ensure these standards are set to a robust level.
“If the standards setting body is weak, then the regime will be weak.”
Senator Collins also said that the LIF bill does not go far enough, as it does not address concerns about life insurers’ claims handling processes.
“The bill does something in relation to conflicted remuneration for financial advisers selling life insurance products but it doesn’t address the issue of conflicted remuneration for claims handlers,” she said.
“The final bill does not address the broader cultural and systemic issues that have come to light within the banking and financial services sector.
“So we support these modest reforms in this bill. I hope that they will improve consumer confidence and the quality of financial advice on life insurance. However, they only go so far.”
It just continues to sicken me like nothing else how these UNQUALIFIED idiot politicians are shaping OUR industry, about which they know nothing. Please, somebody, tell me what QUALIFICATIONS they have to run OUR country, Hmmm? What are THEIR qualifications in economics and a raft of other portfolios necessary to run Australia like a well governed company? Yep, most times they have ZERO qualifications in their particular area. Must THEY do Kaplan style updates every month?! Absolutely not as THEY make the rules for US and everybody else. They are thumping on the table in their uneducated fashion insisting that we, the ‘already qualified’ advisers much be more qualified. I’ve no idea how more technical FP degrees or such will help me when I’m sitting with a family in their home at night protecting them with insurance like I have for 33 years! This whole situation, every aspect of it reeks of self-interest & corruption in govt and special interest groups like the AFA, FPA and Bankers association but to name only a few parasites. So much for the hallowed trivia these groups spout called “Clients best Interests” – they wouldn’t know them if the fell over them.
The union/labour agenda ( yes we all know they are tied at the hip ) is to funnel funds into industry super funds and stack the boards with union reps. Its that simple. Their pretence to champion consumer protection goes on and on and on. The reality is it is just that. A pretence.
Well the two big issues with underinsurance. Overpricing by insurers due to their own bloated costs and poor claims paying. So lets attack IFA’s through where there is the least level of complaints and the highest level of successful claims paid. The hypocrisy is unbelievable.
Big 4 Banks & Industry Funds are a disaster when it comes to claims. Isnt that what insurance is for ?
Kelly O’Dwyer you are a disaster – how many banks have had claims issues & you as Minister sit back and want to destroy non aligned advisers who do care about clients & assist them with claims. Get real Kelly & show some courage the Liberals appear to not want to ruffle feathers of the big banks. Labor support the unions & Liberal support the big 4 banks no wonder this country is going backwards.
So she is basically saying that Bill Shorten failed in his role as Minister for Financial Services and Superannuation that he held from 2010 to 2013.
Perhaps Senator Collins should be looking at the recent announcements from FOS & ASIC which show that of the three insurance channels – direct, group & advised – that advised insurance has the lowest number of complaints to FOS and the best claims experience. Direct insurance is the worst on both measures, while group insurance sits between the two. However, given all the changes to policy definitions introduced by Union Super Funds in recent times that restrict or limit the benefits to members i expect that the level of complaints to FOS and ASIC about group insurance claims will rise dramatically.
The continued rank hypocrisy of the Union Super movement will come back to bite them hard. Could you imagine the hue and cry from Labor, the Greens, CHOICE, et al if one of the Big 4 banks/AMP had introduced the same types of changes to their TPD insurance cover that Australian Super has done with theirs? And the fact that AustSuper portrayed it as a “win” for members in their annual statements because premiums aren’t increasing as much as they have in past years. There was no mention that it is now significantly harder to make a claim under the new policy definition. The trustees working for the benefits of members, not. It’s Australian, but its NOT super.
[b]Laborspeak interpretation #1:[/b] “make it so uneconomical and difficult for FP’s, that significant numbers are forced out and various big banks find it unprofitable and exit, so we can get more coffers in the ISA slushfund for our own use & benefit – but hey, we’re unconflicted and only concerned with the consumer”
Minister for FSC and Banks – Kelly ODwyer will never go after the institutions regardless of their failures. ODwyer you are an institutional lacky and a disaster for the IFA advisers.
Labor just wants to film the board positions with its union mates from Industry Super Funds and other friendly organizations to them.
The government and the opposition lack the resolve to attack the institutions which are the root of the cultural problem. Instead they have attacked advisers as scapegoats.