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Feb 6, 2014

Coalition embraces big bank gouge that even Howard rejected

The Abbott government wants to allow conduct by financial planners that will boost the banks and has long been banned -- and which even the Howard government refused to legalise.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

The government’s winding back of the Future of Financial Advice reforms will legalise conduct by financial planners that has long been banned and hand a major win to the big banks and AMP — one that even the Howard government rejected, Crikey can reveal.

Draft regulations to reverse the Future of Financial Advice reforms established by Labor were released by Assistant Treasurer Arthur Sinodinos last week as the Coalition rushes to remove reforms that took years of consultations, parliamentary inquiries and reviews to develop, trying to do as much as possible via regulation in order to avoid parliamentary scrutiny.

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13 comments

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13 thoughts on “Coalition embraces big bank gouge that even Howard rejected

  1. Bill Hilliger

    Many believe that the essence of the Sinodinos dictum to the retail super industry is …treat the public like sheep. The coalition government and retail super industry realise and know sheep need to be shorn of their hard earned money at regular intervals.

  2. Electric Lardyland

    Another indication that the members of the Abbott government seem to have learnt essentially nothing from the Global Financial Crisis.
    Actually, could somebody in the Australian media, please start asking Abbott what he did learn from the GFC? It would be interesting to observe the long moment of blankness, as the internal hamsters desperately try to spin the mental wheels into place, before his neurons finally link GFC and pink batts, and he scrambles to the safe ground of blaming Labor.

  3. MJPC

    The Abbott Government wants to deliver it and who amongst the media (apart from here) has this been highlighted. We have the barbarians banging on the door and joe public sound asleep in their beds thinking they are bring guarded.

  4. zut alors

    Bill Hilliger, Sinodinos can’t be blamed for treating the public like sheep having seen News Corp successfully drench the electorate in a generous misinformation dip then herd them into the polling booths last September.

  5. Jimmyhaz

    Truly amazing, I find it absolutely outstanding that even though the shock-waves from the GFC are still being felt, this government feels the need to give large private financial corporations more power with less oversight. I mean, it’s getting to the point where I feel that they are intentionally sabotaging our economy, I’m starting to eagerly await an announcement on our return to the gold standard, and the repositioning of a debt limit.

  6. Bill Hilliger

    Zut Alors, agree with you there.

  7. CML

    Anybody with half a brain needs to keep right away from the ‘retail sector’ when it comes to investments.
    Stick with Industry funds and the honest financial planning advice they offer – at least in my experience.

    And Jimmyhaz – don’t you know Australia NEVER HAD A GFC?!! The rAbbott and his motley crew have been telling this particular fairy story for years now. We didn’t need the stimulus spending, BER, pink batts, or any of the other measures introduced by the Rudd Labor government, which gave us one of the best outcomes from the GFC anywhere in the world.
    They have no bloody idea!

  8. sparky

    This follows a theme of “personal responsibility”, we’ll help you get screwed because it will be your responsibility to look after yourself.

  9. Jimmyhaz

    CML

    Personally I do think Joe Hockey has some understanding of how national economies work, i.e all government spending being stimulus spending. I get the feeling he’s using the LNP’s message of SURPLUSSURPLUSSURPLUS as a Trojan horse to push through his particular brand of libertarianism.

  10. Patrick

    I think this is just 1 stream of the union bashing jihad the government is following. Those pesky industry super funds are just too close to the union movement to be trusted. So let’s allow planners to give advice that ignores the low fees charged by industry funds and the high fees charged by retail funds. After switching from a retail fund to an industry fund a few years ago, I was stunned by the fee difference I was paying under my old crappy retail fund versus the very, very low fees I am paying in an industry fund. To the banks and AMP it is just a fantastic money spinner.

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