Mar 23, 2012

Shorten lands FOFA with a compromise on opt-in

It will take a while for the dust to settle on the Future of Financial Advice reform package, which passed the House of Reps after negotiations between the independents and Bill Shorten.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

It will take a while for the dust to settle on the Future of Financial Advice reform package, which passed the House of Reps last night after negotiations between the independents and Bill Shorten.

However, despite press reports to the contrary, the compromise agreed appears to preserve the critical opt-in requirement for financial advice fees.

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14 thoughts on “Shorten lands FOFA with a compromise on opt-in

  1. Jimmy

    Great news!! Anything that squeezes out the lazy shonks is just fantastic.

    It is also another example of the excellent legislative record of this govt which continues to get controversial legislation passed for the good of the nation.

  2. paddy

    Excellent piece Bernard.
    When it came down to the final days & hours of this bill passing the HOR, the ranting from all the interest groups grew so loud, that I wasn’t sure which bits of the bill had been sacrificed.
    Good to read your take on it. Quite reassuring.

    Also looking forward to reading Alan Kohler’s opinion.
    (Especially as it’s been one of his hobby horses for so long.)
    Alas, nothing in today’s Business Spectator.

  3. billie

    I am appalled that my financial planner charges me to produce a statement of account on an annual basis even though it is required to complete my tax return. Then the squirrelly little sod collects trailing commissions based on the value of my investment, is that the original money put in, or its current value.

    Very disappointed that Rob Oakeshott is allowing these bottom feeders to continue to leech the savings of Australians

  4. CliffG

    Right on Steve! And a marked contrast with the vile antics of Abbott and his cronies. They are so covered in sewerage they can’t surface.

  5. Keeno Modercut

    Ditto, the above three.

  6. crisante dante

    At this rate, when Tony gets into The Lodge he won’t have enough time to govern being busy undoing all the good work Julia’s team is doing. Let’s hope Australians are grown up enough not to give him that opportunity.

  7. Mark from Melbourne

    Good to see this one get through – hopefully it works as planned.

    The interesting thing about this is that legitimate FP’s say that this will create a bunch of quite unproductive, costly paperwork for them but…

    The really interesting thing was that they weren’t that fussed losing this as long as they retained the commissions on insurance – this was where they made the big bucks. I think it was 115% of premium for 1st year and then 15% thereafter. Money for jam…

  8. AR

    Well done Gillard government, as with so many other fine legislative initiatives. Keep it up, show what a real reforming Labor PM can do and maybe, just maybe, the great somnambulist lumpen might be roused from their stupor long enough to realise the danger of the MM & his unlovely cohort.
    Unfortunately, if it requires any sort of opt-in or overt action, given that ASIC equivocation, then like the organ donor, the don’t call register, the cost free option to change banks and many other things that a semi sentient populace might do for its own benefit, will probably be ingnored.
    It’s a lose-lose game to rely upon informed self interest.

  9. Glenn Brandham

    Thanks for that, Bernard, another win for Gillard…and I echo Billie’s experience.

  10. billie

    I can’t see how you can distinguish between illegitimate financial planners and legitimate financial planners. All these fellows have to do is pay $2000 for a 3 day course then they will be able to charge hidden opt-out fees as per usual

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