Minister for Financial Services, Superannuation and Corporate Law
9 June 2009 - 14 September 2010
Future of Financial Advice Reforms _ Coalition
Short on Policy and Detail
The Shadow Minister against Financial Services and Superannuation has been caught out making comments based on newspaper headlines rather than checking the facts.
My comments on the day of the Government's announcement on the Future of Financial Advice (FOFA) reforms, made it clear that the Government's position from the beginning was that there would be a delay of a few years before the annual renewal notice provision of the 'adviser charging' model would first apply.*
Left smarting from his embarrassing enforced backdown on the Coalition's 'policy' on super contribution caps, the Member for Cowper has been caught again not checking the facts.
The Government's position on when the annual renewal notice might first commence were crystal clear on the day the FOFA reforms were first announced.
The Government has begun consulting on the implementation details of the FOFA reforms and people can keep updated on the consultations by going to futureofadvice.treasury.gov.au.
What is also crystal clear is that the Joe Hockey and Luke Hartsuyker want Australians to receive financial advice that is riddled with conflicts of interest and commissions.
When it comes to boosting retirement incomes and helping Australians get access to get independent and quality advice, the Coalition's policy is to say 'no'.
To date, the Coalition has confirmed that it is opposed to:
- The Rudd Government's Future of Financial Advice reforms, which include removing conflicts of interest and commissions from financial advice and introducing a new adviser charging model that empowers investors to pay and receive the financial advice that they want.
- The Rudd Government's Stronger and Fairer Superannuation reforms, which include the increase in the Super Guarantee from 9 to 12% and would see an 18-year old who enters the workforce today, on average weekly earnings, receive an additional $200,000 in retirement.
- The Rudd Government's Small Business Super Clearing House, a measure that passed the parliament despite Coalition opposition, that will reduce red-tape and allows small businesses to access a free clearing house service that also acquits their superannuation guarantee obligations.
- The Super System Review ('Cooper Review') which is examining the structure, costs and efficiency of the superannuation system, and is due to be handed to the Government on 30 June.
4 June 2010
BOWEN: So we will institute a system [referring to adviser charging], so maybe after a few years, you have the option to renew that annually, to ensure that you are getting the value for money that you want.