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Minority Report by Opposition Members
1.1
Whilst
in general the measures in the Bill
represent some progress towards simplifying some elements of our complex
financial regulatory system it is far from a comprehensive set of solutions.
Indeed it has all the indications of a rushed set of measures. The Treasury
submission itself indicates further piece meal reform is still to occur for
example on the major matter of sales recommendation "this matter will be
the subject of ongoing development for possible inclusions in a future
legislative vehicle ". Further, the regulations will not be available, as
they should be, given important detail to be included until after passage of
the legislation.
1.2
It
is disturbing that after 3 years of Financial Services Reform (FSR) disclosure
documentation is still lengthy, complex and unreadable often some 50 to 100
pages. There is every indication from treasury and witnesses that it will be
little changed after the passage of this legislation. Further, no consumer
testing has yet been carried out by Treasury.
1.3
Given
the rushed ad hoc nature of the approach it is necessary to ensure there are
not adverse, unintended consequences, particularly;
- Given
the lack of regulation details, the critical consumer protections to be
contained in the record of advice,
- The
"do not directly receive" direct remuneration can be circumvented by
indirect remuneration,
- The
$15,000 threshold provides the capacity for many millions of Australians with
super balances less than this figure to potentially receive, in some cases
poorer advice.
1.4
In
this context both S947D detailed in regulations (not provided) and anti
mis-selling surveillance will be critical and should be maintained.
1.5
The
lack of detail and undertakings from industry that despite a claimed improvement
in efficiency and reduction in cost that prices charged will actually fall is
of concern.
Ms Anna Burke
Deputy Chair |
Mr Chris Bowen MP |
| |
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| Senator the Hon Nick Sherry |
Senator Penny Wong |
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