Jul 15, 2014

Palmer’s pointless red tape hands banks a big win on FOFA

On the day the financial services inquiry is flagging the high cost of vertically integrated wealth management, Clive Palmer looks set to help the government gut consumer protections.

Bernard Keane ā€” Politics editor

Bernard Keane

Politics editor

The opposition’s effort to prevent the government from gutting the Future of Financial Advice consumer protections appears doomed to fail, with a desperate government agreeing to a series of demands from Clive Palmer for more red tape in financial planning laws.

As reported today by Phil Coorey and Laura Tingle in the Financial Review, Palmer has asked for four changes to financial planning laws in exchange for not supporting Labor’s motion to disallow the regulation. They are:

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18 thoughts on “Palmer’s pointless red tape hands banks a big win on FOFA

  1. zut alors

    Should there be another scandal similar to the fallover of Storm it will leave a stench on the Abbott government which will be seen to have sided with the corporate set rather than suburban investors (aka voters).

  2. Bob's Uncle

    Thanks Bernard for helping to keep this story alive (it seems only Crikey and Fairfax see anything of note here).

    One of the reasons for the Government’s desperation is a lack of preliminary work for the 1 July start date. A consultant at one affected institutions told me last year of the detailed compliance work that was going on in preparation for FOFA (perhaps a 12 month project) – and how some banks had taken the decision not to even bother with this compliance work following the last election.

    If FOFA in its current form (and in particular some of the notification and customer consent requirements) DO go into operation, the sh*t is likely to hit the fan in a big way in at least a couple of the Big 4. Would have been fun to hear a question about preparation status at a certain recent Senate enquiry.

  3. klewso

    The original “Bacchus” wasn’t much of a politician either – he was too pissed too?

  4. klewso

    This bloke will be held to account too – “aiding and abbotting” this government.

  5. Mark from Melbourne

    Our disgusting government at work. Palmer plays with the idea of looking after people but is as sleazy as the rest of them, if not more so.

  6. tonyfunnywalker

    A number of Financial Planners have been acquired by the big 4 and recent correspondence suggests a high level of corporatisation of the “Lisensed Planners” following the regulation change on the 1st July.
    All the banks need to do is to shift their ” wealth planning ” to their fully owned subsiduaries rather than to in-house planners where conflict of interest may be raised as an objection to the sale.
    The tagging can still occur of customers or prospective customers to the ” Independent” (the bank owned planners) with the commission system remaining intact for bank “referrals”.
    These regulations are wide open to abuse and unless all loopholes are closed to include “directed sales referencing ” to wholly owned Subsiduaries and Agencies.
    Directed Selling is illegal under the TPA was my understanding although it is rife in the automotive, IT, car insurance and electronics industry — so why not the banks?

  7. Karen

    Yet another free kick to big business and conservative ideology. Under Abbott, big business has not only pretty well avoided any impost and cuts to subsidies, but now enjoys tax cuts and other anticipated transfers, such as this. Who pays? The community, of course, through service cuts and major imposts on tertiary education. When will these masochistic voters (who worry about shekels and not the big picture) realise they have been had, I wonder? Or are they going to allow themselves to be led by the nose again, come the next election?

  8. CML

    Up until now, I have found Clive Palmer’s antics amusing.
    Suddenly you are not funny anymore, Clive. You and your party are putting the financial affairs of many Australians at risk.
    Where is the likes of Jacqui Lambie who promised to cross the floor if she was asked to vote on legislation which adversely affected Tasmanians. Don’t your voters ever seek advice from financial planners, Jacqui? You have a loud mouth and no follow through, it seems.
    And the other cross-benchers in the Senate are no better. At least we will know who to blame when the sh+t hits the fan – as it inevitably will!!

  9. Yclept

    “why would anyone trust a financial planner linked to the big banks or AMP?”

    Well I’ve never trusted them and I certainly won’t be taking any of my hard earned near any so called financial planners ever. DIY thanks!

  10. Karen

    CML, we all know PUP is full of the proverbial. Voters should have been aware that PUP being the ultra right wing party that it is, is focussed on the interests of big business as it has done by supporting the government.

    And as for those stupid, meaningless, “claytons” amendments that PUP pushes through, what does it actually achieve for the community e.g.. so called PUP FOFA protections that are already legislatively enshrined. Give me a break. And as for passing on savings of $550/household following the abolition of the carbon tax, put up your hand if you believe that one, lol.

    But then, feisty little Jacqui doesn’t care what anyone thinks. She’s got her self a nice little senate sinecure, her angry face on TV, and a pension to ride off into the sunset when its all over. Yeah, it would appear that it does pay to play the bogun and pretend to be a woman/man of the people…

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