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Footnotes
Chapter 1
[1] Selection Committee Report, House of Representatives Hansard, 13 October 2011, p. 11873.
[2] Selection Committee Report, House of Representatives Hansard, 24 November 2011, p. 13849.
[3] Australian Securities and Investments Commission, Report 224, 'Access to financial advice in Australia', December 2010, p. 30.
[4] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 16.
[5] Australian Securities and Investments Commission, Report 251: Review of financial advice industry practice, September 2011, p. 6.
[6] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 16.
[7] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 17.
[8] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 7.
[9] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 8–9, 15.
[10] ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', April 2011, p. 4.
[11] ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', April 2011, pp 21-23.
[12] ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', April 2011, pp 45–48.
[13] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. vii.
[14] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 149.
[15] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 110.
[16] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 127.
[17] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 115.
[18] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 111, 139–141.
[19] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 111. In this context shadow shopping exercises involve ASIC officials posing as consumers and obtaining financial advice from providers to determine its quality and compliance with regulations.
[20] AFSLs are granted to financial service businesses, which then authorise individual employees to operate under the terms of that licence.
[21] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 135, 139.
[22] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 139–141.
[23] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 141.
[24] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 146.
[25] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 127–128.
[26] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 140.
[27] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 147.
[28] The Hon. Chris Bowen MP, Minister for Financial Services, Superannuation and Corporate Law, 'Overhaul of Financial Advice', Media Release No. 036, 26 April 2010.
[29] The Hon. Chris Bowen MP, Minister for Financial Services, Superannuation and Corporate Law, 'Overhaul of Financial Advice', Media Release No. 036, 26 April 2010, pp 8–9.
[30] Treasury, 'Review of compensation arrangements for consumers of financial services', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=consultation/compensation_arrangements_CP/default.htm (accessed 3 January 2012).
[31] The Hon. Chris Bowen MP, Minister for Financial Services, Superannuation and Corporate Law, 'Overhaul of Financial Advice', Media Release No. 036, 26 April 2010, pp 8–10.
[32] The Hon. Chris Bowen MP, Minister for Financial Services, Superannuation and Corporate Law, 'Overhaul of Financial Advice', Media Release No. 036, 26 April 2010, p. 10.
[33] The Hon. Chris Bowen MP, Minister for Financial Services, Superannuation and Corporate Law, 'Overhaul of Financial Advice', Media Release No. 036, 26 April 2010, p. 9.
[34] Treasury, 'Future of Financial Advice: Consultation', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=consultation.htm (accessed 9 January 2012).
[35] 'Soft dollar' benefits are any non-monetary benefits received by a party as part of a remuneration arrangement for services provided.
[36] The Hon. Bill Shorten MP, Minister for Financial Services and Superannuation, 'Government announces financial advice advisory panel membership', Media Release No. 015, 24 November 2011, p. 1.
[37] Australian Government, 'Future of Financial Advice 2011: Information Pack', 28 April 2011, pp 5-6.
[38] The Hon. Bill Shorten MP, Minister for Financial Services and Superannuation, 'Future of Financial Advice reforms – Draft legislation', Media Release No. 127, 29 August 2011; Treasury, 'Exposure Draft – Corporations Amendment (Future of Financial Advice) Bill 2011', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=consultation/corporations_amend/default.htm (accessed 9 January 2012).
[39] Joint Consumer Submission, Submission 25, p. 6; Treasury, 'Exposure Draft - Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=consultation/corporations_further/default.htm (accessed 9 January 2012).
[40] In this table 'FOFA Bill No. 1' refers to the Corporations Amendment (Future of Financial Advice Measures) Bill 2011 while 'FOFA Bill No. 2' refers to the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011.
[41] Corporations Amendment (Further Future of Advice Measures) Bill 2011, Explanatory Memorandum, p. 12.
Chapter 2 - Provisions of the Bills
[1] The Hon. Bill Shorten, MP, Minister for Financial Services and Superannuation, 'Future of Financial Advice Reforms—Draft Legislation', Media Release 127, 29 August 2011.
[2] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 15. See also Corporations Amendment (Future of Financial Advice) Bill 2011, Schedule 1, item 10, section 962D.
[3] Corporations Amendment (Future of Financial Advice) Bill 2011, Schedule 1, item 10, sections 962R and 962S.
[4] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 7.
[5] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 8.
[6] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 9. This section also applies to renewal notices in subsection 962K(3).
[7] Corporations Amendment (Future of Financial Advice) Bill 2011, Schedule 1, item 10, section 962F.
[8] Corporations Amendment (Future of Financial Advice) Bill 2011, Schedule 1, item 10, section 962F.
[9] Corporations Amendment (Future of Financial Advice) Bill 2011, Subsection 962F(2).
[10] Corporations Amendment (Future of Financial Advice) Bill 2011, Schedule 1, item 10, section 962F.
[11] Corporations Amendment (Future of Financial Advice) Bill 2011, Subsection 962F (3).
[12] Corporations Amendment (Future of Financial Advice) Bill 2011, Subparagraph 913B(1)(b), 920A(1)(aa).
[13] Corporations Amendment (Future of Financial Advice) Bill 2011, Subparagraph 920A(1(c)
[14] Corporations Amendment (Future of Financial Advice) Bill 2011, Subparagraph 913B(4)(a), 920A(1)(g)(h).
[15] Corporations Amendment (Future of Financial Advice) Bill 2011, Subparagraph 920A(1)(aa).
[16] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 20; 920A(1)(1A)(1B).
[17] The Hon. Bill Shorten MP, Minister for Financial Services and Superannuation, House of Representatives Hansard, 24 November 2011, p. 13751.
[18] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Schedule 1, item 23, Division 2, subsection 961(6).
[19] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 10.
[20] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 7.
[21] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 7.
[22] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Schedule 1, item 23, division 2, section 961D.
[23] See Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Schedule 1, item 23, Division 2, Subdivision B, paragraph 961B(2)(c) and sections 961C and 961D.
[24] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Schedule 1, item 23, division 2, section 961H.
[25] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Schedule 1, item 23, division 2, subdivision B, paragraphs 961B(2)(a), (b) and (c).
[26] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 23.
[27] Retail investment platforms provide a central hub for investors to access a range of investment products, and allow for consolidation of client information and reporting on these assets.
[28] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 28.
[29] Schedule 1, item 24, division 4, paragraph 963B(1)(c).
[30] Schedule 1, item 24, division 5, subdivision B.
[31] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 37.
Chapter 3 - Annual fee disclosure and the opt-in obligations
[1] Corporations Amendment (Future of Financial Advice) Bill 2011.
[2] Treasury, Submission 22, p. 5.
[3] Treasury, Submission 22, p. 6.
[4] For example, see Association of Financial Advisers (AFA), Submission 66, p.10; Financial Planning Association of Australia (FPA), Submission 62, p. 6.
[5] Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers Ltd.,
Committee Hansard, 23 January 2012, p. 12.
[6] Mr Dante De Gori, General Manager, Financial Planning Association Committee Hansard,
23 January 2012, p. 44. See also evidence provided by Mr Santucci, President, Boutique Financial Planning Principles Group; Ms Cargakis, General Manager, Associated Advisory Practices; and Ms Petrik, Corporate Development Manager, Professional Investment Services, Committee Hansard, 23 January 2012, p. 71.
[7] Financial Services Council, Submission 58, p. 5.
[8] Joint Consumer Groups, Submission 25, p. 2.
[9] Stockbrokers Association of Australia, Submission 8, p. 9; Burrell Stockbroking and Superannuation, Submission 11, p. 2.
[10] Burrell Stockbroking and Superannuation, Submission 11, p. 5; Professional Investment Services, Submission 17, p. 3.
[11] IOOF, Submission 19, p. 5.
[12] Burrell Stockbroking and Superannuation, Submission 11, p. 5; Professional Investment Services, Submission 17, p. 3.
[13] Burrell Stockbroking and Superannuation, Submission 11, p. 5. See also Associated Advisory Practices, Submission 20, p. 4.
[14] Dr Deen Sanders, Chief Professional Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 43.
[15] See for example, Mr Barrett, ANZ Wealth, Committee Hansard, 24 January 2012, p. 5;
Mrs Keddie Waller, Policy Adviser, Financial Planning, CPA Australia, Committee Hansard, 24 January 2012, p. 51.
[16] Mr Philip Anderson, Chief Operating Officer, Association of Financial Advisers Ltd, Committee Hansard, 23 January 2012, p. 17.
[17] Financial Services Council, Submission 58, p. 7; Committee Hansard, 23 January 2012, p. 37.
[18] Financial Services Ombudsman, Submission 15, p. 5.
[19] Mr Shane Tregillis, Chief Ombudsman, Financial Ombudsman Service (FOS), Committee Hansard, 24 January 2012, pp 41–44.
[20] Mr Shane Tregillis, FOS, Chief Ombudsman, Committee Hansard, 24 January 2012, pp 39–48.
[21] Mr Shane Tregillis, FOS, Chief Ombudsman, Committee Hansard, 24 January 2012, p. 44.
[22] Mr Shane Tregillis, FOS, Chief Ombudsman, Committee Hansard, 24 January 2012, pp 39–48.
[23] Professional Investment Services, Submission 17, p. 6.
[24] Corporations Amendment (Future of Financial Advice) Bill 2011, Explanatory Memorandum, para. 1.20 & 1.21.
[25] Treasury, answer to question on notice, 24 January 2012, (received 10 February 2012). http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/Completed_inquiries/2010-13/future_fin_advice/submissions (Accessed 24 January 2012).
[26] Treasury, answer to question on notice, 24 January 2012, (received 10 February 2012). http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/Completed_inquiries/2010-13/future_fin_advice/submissions (Accessed 24 January 2012).
[27] Mrs Keddie Waller, Policy Adviser, Financial Planning, CPA Australia, Committee Hansard, 24 January 2012, p. 51.
[28] This issue was raised by Burrell Stockbroking and Superannuation, Submission 11, p. 5; Financial Services Ombudsman, Submission 15, p. 2; Professional Investment Services, Submission 17, p. 5.
[29] Mr Bradley Fox, National President, Association of Financial Advisers, Committee Hansard,
23 January 2012, p. 19.
[30] IOOF, Submission 19, p. 5.
[31] Professional Investment Services, Submission 17, p.3 & 5; see also IOOF, Submission 19, p. 5.
[32] Burrell Stockbroking and Superannuation, Submission 11, p. 4.
[33] Associated Advisory Practices, Submission 20, p. 3.
[34] Rice Warner's submission to the government citing figures is available at: http://www.ricewarner.com/images/newsroom/1316044106_The%20Cost%20of%20Opt-in_Government%20Submission.pdf. The full report is available at: http://www.industrysupernetwork.com/wp-content/uploads/2011/05/OptInRiceWarner.pdf.
The Rice Warner research was commissioned by the Industry Super Network.
[35] Burrell Stockbroking and Superannuation, Submission 11, p. 2
[36] Mr Bradley Fox, National President, Association of Financial Advisers, Committee Hansard, 23 January 2012, p. 16.
[37] Ms Cecilia Storniolo, Senior Policy Manager, Financial Services Council, Committee Hansard, 23 January 2012, p. 37.
[38] Committee Hansard, 23 January 2012, p. 42.
[39] FPA, Submission 62, p. 6.
[40] Mr Craig Meller, Managing Director, AMP Financial Services, Committee Hansard,
23 January 2012, p. 5.
[41] Dr Deen Sanders, Chief Professional Officer, Financial Planning Association,
Committee Hansard, 23 January 2012, p. 46.
[42] Burrell Stockbroking and Superannuation, Submission 11, p. 3.
[43] Mr Shane Tregillis, Chief Ombudsman, Financial Ombudsman Service, Committee Hansard, 24 January 2012, pp 43–44.
[44] Treasury, Submission 22, p. 5.
[45] Assoc. Prof. Joanna Bird, representing the Australian Shareholders' Association, the Australian Investors Association, Choice, Consumer Action Law Centre, Council on the Ageing and the National Information Centre on Retirement Investments, Committee Hansard, 23 January 2012,
pp 57–58.
[46] Joint Consumer Groups, Submission 25, p. 2.
[47] Joint Consumer Groups, Submission 25, p. 2.
[48] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 60.
[49] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 61.
[50] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 61.
Chapter 4 - Views on the introduction of a statutory 'best interests' duty for financial advisers
[1] Association of Financial Advisers Ltd, Submission 66, p. 12; Financial Services Council, Submission 58, p. 41; Financial Planning Association of Australia, Submission 62, p. 16; Joint Accounting Bodies, Supplementary submission 23, p. 3; Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 57; ASIC, Supplementary submission 28, p. 12; Treasury, Supplementary Submission 22, p. 3.
[2] Joint Accounting Bodies, Supplementary submission 23, p. 1.
[3] Association of Financial Advisers, 'AFA Code of Ethics', http://www.afa.asn.au/members_conduct_ethics.php (accessed 25 January 2012); Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard,
23 January 2012, p. 40.
[4] Boutique Financial Planning Principals Group Inc., Submission 48, p. 4.
[5] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, pp 16–17.
[6] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, pp 17–18.
[7] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 110.
[8] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 6.
[9] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 6.
[10] The Trust Company, Submission 53, p. 11.
[11] The Trust Company, Submission 53, pp 2, 7.
[12] Law Council of Australia, Submission 55, p. 3.
[13] Industry Super Network, Supplementary submission 12, p. 2.
[14] Industry Super Network, Submission 12, p. 2.
[15] Australian Institute of Superannuation Trustees, Supplementary Submission 18, p. 3.
[16] Joint Consumer Submission, Submission 25, p. 11.
[17] Section 52 of the SIS Act includes a statutory obligation for superannuation trustees to act in the best interest of fund members (see also paragraph 4.32 below).
[18] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 9.
[19] Financial Services Council, Submission 58, pp 43, 47–48.
[20] AMP Financial Services, Submission 43, p. 16; Mr Paul Barrett, General Manager, Advice and Distribution, ANZ Wealth, Committee Hansard, 24 January 2012, p. 4; Associated Advisory Practices, Supplementary Submission 20, p. 6.
[21] Law Council of Australia, Submission 55, p. 4.
[22] Financial Services Council, Committee Hansard, 23 January 2012, pp 33–34; AMP Financial Services, Submission 43, p. 16; Law Council of Australia, Submission 55, p. 4.
[23] AMP Financial Services, Submission 43, pp 16–17.
[24] Industry Super Network, Submission 12, p. 2.
[25] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 64.
[26] Mr John Price, Senior Executive Leader, Strategy and Policy, ASIC, Committee Hansard,
24 January 2012, pp 69–70.
[27] Mr John Price, Senior Executive Leader, Strategy and Policy, ASIC, Committee Hansard,
24 January 2012, pp 69–70.
[28] Mr Peter Kell, Commissioner, ASIC, Committee Hansard, 24 January 2012, p. 70.
[29] Law Council of Australia, Submission 55, p. 3.
[30] Financial Services Council, Submission 58, p. 42.
[31] Westpac Group, Submission 64, p. 13.
[32] Law Council of Australia, Submission 55, pp 4–5. The existing best interest obligations for superannuation trustees are contained in Superannuation Supervision Act 1993, paragraph 52(2)(c).
[33] Law Council of Australia, Submission 55, p. 5.
[34] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 16.
[35] Senate Standing Committee for the Scrutiny of Bills, Alert Digest No. 1 of 2012, 8 February 2012, pp 7–8.
[36] Professional Investment Services, Supplementary submission 17, p. 7.
[37] Financial Services Council, Submission 58, p. 41.
[38] Treasury, Supplementary submission 22, p. 4.
[39] The Hon Bill Shorten MP, Minister for Financial Services and Superannuation, 'Improving access to simple financial advice', Media Release No. 164, 8 December 2011.
[40] ASIC Class Order CO 09/210, Intra-fund superannuation advice, July 2009.
[41] ASIC Regulatory Guide 200, Advice to super fund members, July 2009.
[42] Association of Financial Advisers Ltd, Submission 66, p. 12; Association of Superannuation Funds of Australia, Supplementary Submission 1, pp 2–4; AMP Financial Services, Submission 43, p. 17; Westpac Group, Submission 64, p. 15; Professional Investment Services, Supplementary submission 17, pp 5–6.
[43] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, pp 11–12.
[44] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 12.
[45] Mr Craig Meller, Managing Director, AMP Financial Services, Committee Hansard, 23 January 2012, p. 4.
[46] Financial Services Council, Submission 58, p. 46; Australian Bankers' Association, Submission 67, p. 17.
[47] Financial Services Council, Submission 68, pp 45–46.
[48] Industry Super Network, Supplementary Submission 121, p. 2.
[49] AustralianSuper, Submission 38, p. 2.
[50] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, pp 63–64.
[51] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, pp 63–64.
[52] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, pp 63–64.
[53] Namely Regulatory Guide 200, Access to advice for super fund members; Regulatory Guide 84, Super switching advice: Questions and answers; and Regulatory Guide 175, Licensing: Financial product advisers—Conduct and disclosure.
[54] ASIC, Supplementary submission 28, pp 11, 12.
[55] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 9.
[56] Financial Services Council, Submission 58, p. 49; Australian Institute of Superannuation Trustees, Supplementary submission 18, p. 2; Australian Bankers' Association, Submission 67, p. 18.
[57] Financial Services Council Ltd, Submission 58, pp 49–50.
[58] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 16.
[59] Ms Sue Vroombout, General Manager, Retail Investor Division, Treasury, Committee Hansard, 24 January 2012, p .65.
[60] Ms Sue Vroombout, Treasury, General Manager, Retail Investor Division, Committee Hansard, 24 January 2012, p. 65.
[61] Insurance Council of Australia, Supplementary Submission 39, p. 3.
[62] Australian Bankers' Association, Supplementary Submission 67, p. 4.
[63] Ms Diane Tate, Policy Director, Australian Bankers' Association Committee Hansard,
23 January 2012, p. 22.
[64] Australian Bankers Association, Supplementary Submission 67, p. 4.
[65] Abacus Australian Mutuals, Supplementary Submission 141, p.5.
[66] Abacus Australian Mutuals, Supplementary Submission 141, p.5; Australian Bankers' Association, Submission 67, p. 12.
[67] Joint Consumer Submission, Supplementary Submission 25, pp 5–6.
[68] Joint Consumer Submission, Supplementary Submission 25, pp 4–5.
[69] The Trust Company, Submission 53, pp 7, 9.
Chapter 5 - Bans on conflicted remuneration
[1] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 69–70.
[2] The Treasury, Submission 22, p. 9; Joint Consumer Groups, Supplementary Submission 25, pp 9–10.
[3] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, p. 28.
[4] Australian Securities and Investments Commission, Supplementary Submission 28, p. 13.
[5] Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into financial products and services in Australia, November 2009, pp 75, 79.
[6] Jennifer McDermott, 'What's that: Shelf-space fees', The Australian, 9 June 2010.
[7] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Subsection 964A(2).
[8] Joint Consumer Groups, Supplementary Submission 25, pp 8-9.
[9] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 23.
[10] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, pp 7, 30–31.
[11] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 23.
[12] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 24.
[13] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 33.
[14] Subject to further consultation, it is proposed that the receipt of 'stamping fees' from companies for raising capital on those companies' behalf not be considered 'conflicted remuneration' where the broker is advising on and/or selling certain capital-raising products to the extent that they are (or will be) traded on a financial market.
Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 30.
[15] Australian Bankers' Association, Submission 67, p. 10.
[16] Law Council of Australia, Submission 5, p. 9.
[17] Law Council of Australia, Submission 5, p. 9.
[18] Australian Bankers' Association, Submission 67, p. 10; Financial Services Council, Submission 58, p. 76.
[19] Financial Services Council, Submission 58, p. 76.
[20] Australian Bankers' Association, Submission 67, p. 11.
[21] Financial Services Council, Submission 58, p. 76.
[22] Financial Services Council, Submission 58, p. 76.
[23] Australian Bankers' Association, Submission 67, p. 39.
[24] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, pp 25–26, 35–36.
[25] Treasury, Submission 22, p. 9, see also Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 36.
[26] Joint Accounting Bodies, Supplementary Submission 23, p. 5.
[27] Joint Consumer Groups, Supplementary Submission 25, p. 9.
[28] Joint Consumer Groups, Supplementary Submission 25, p. 9.
[29] Joint Consumer Groups, Supplementary Submission 25, p. 9.
[30] The Hon. Bill Shorten MP, Minister for Financial Services and Superannuation, House of Representatives Hansard, 24 November 2011, p. 13752.
[31] Law Council of Australia, Submission 5, p. 10.
[32] Financial Services Council, Submission 58, p. 63.
[33] Westpac Group, Submission 64, p. 26.
[34] Law Council of Australia, Submission 5, p. 10.
[35] Westpac Group, Submission 64, p. 26.
[36] Financial Services Council, Submission 58, p. 63.
[37] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 36.
[38] Australian Bankers' Association, Submission 67, p. 25.
[39] Australian Bankers' Association, Submission 67, pp 25–26.
[40] Australian Bankers' Association, Submission 67, p. 26.
[41] Australian Bankers' Association, Submission 67, p. 27.
[42] Australian Bankers Association', Submission 67, p. 28. S963L of the Bill states that a benefit is conflicted unless it 'is wholly or partly dependent on the total value of financial products of a particular class'.
[43] ANZ Wealth, Supplementary Submission 29, p. 5.
[44] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 28.
[45] Mr Douglas Latto, President, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 79.
[46] Mr Douglas Latto, President, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 81–82.
[47] Mr Gareth Hall, Treasurer, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 77. For further assertions on the lack of transparency in intra-fund advice see Financial Services Council, Submission 58, pp 70, 73–74.
[48] Boutique Financial Planning Principals Group, Submission 48, p. 8.
[49] Boutique Financial Planning Principals Group, Submission 48, p. 8.
[50] Mr Douglas Latto, President, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 81.
[51] Mr Gareth Hall, Treasurer, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 77.
[52] Intra-fund advice is personal financial advice without a full ‘know your client’ process. The advice must relate only to a member’s account within the superannuation fund. Intra-fund advice can be provided over the phone, via email or face-to-face. Under the intra-fund advice rules, a super fund cannot provide advice on switching super funds, advice on financial products outside super, or advice on general retirement planning. SuperGuide: Simple independent superannuation information, 'Intra-fund advice', http://www.superguide.
com.au/superannuation-topics/intra-fund-advice (accessed 3 February 2012).
[53] Mr Gareth Hall, Treasurer, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 77. For further assertions on the lack of transparency in intra-fund advice see Financial Services Council, Submission 58, pp 70, 73–74.
[54] Mr Gareth Hall, Treasurer, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 78 (see also see also pp 80–81 for a discussion on the difference between personal and general advice).
[55] See paragraph 964A(3)(b) of the bill, which describes a value of scale efficiencies as 'a discount on an amount payable, or a rebate of an amount paid, to the funds manager by the platform operator, the value of which does not exceed an amount that may reasonably be attributed to efficiencies gained by the funds manager because of the number or value of financial products in relation to which the funds manager provides services to the platform operator, or through the platform operator to another person'.
[56] National Insurance Brokers Association of Australia, Submission 59, p. 4.
[57] National Insurance Brokers Association of Australia, Submission 59, p. 5.
[58] National Insurance Brokers Association of Australia, Submission 59, p. 6.
[59] FYG Planners Pty Ltd, Submission 50, p. 2; National Insurance Brokers Association, Submission 59, p. 6.
[60] IOOF Holdings Limited, Submission 19, p. 4.
[61] Association of Financial Advisers, Submission 66, p. 11.
[62] Association of Financial Advisers, Submission 66, p. 11.
[63] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Paragraph 2.26, pp 29–30.
[64] Industry Super Network, Submission 12, p. 2; Industry Super Network, Supplementary Submission 12, p. 4.
[65] Joint Accounting Bodies, Supplementary Submission 23, p. 3.
[66] Joint Accounting Bodies, Supplementary Submission 23, pp 3–4.
[67] Joint Consumer Groups, Supplementary Submission 25, p. 8.
[68] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 59.
[69] Financial Planning Association, Submission 62, p. 20.
[70] ANZ Wealth, Supplementary Submission 29, pp 8–9; Corporate Superannuation Specialist Alliance, Submission 30, p. 3; Mr Brian Williams, iFinancial Solutions, Submission 33, pp 3–4; Moneywise Global Pty Ltd, Submission 41, p. 2; Matrix Planning Solutions, Submission 42, p. 5; FYG Planners Pty Ltd, Submission 50, p. 2; Financial Services Council, Submission 58, pp 54–55; Financial Planning Association, Submission 62, p. 20; Mr Robert Ross, Submission 68, p. 2.
[71] Mr Gareth Hall, Treasurer, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 78.
[72] Financial Planning Association, Submission 62, pp 20–21.
[73] Westpac Group, Submission 64, p. 32.
[74] Corporate Superannuation Specialist Alliance, Submission 30, p. 3.
[75] Mr Douglas Latto, President, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 82.
[76] IOOF Holdings Limited, Submission 19, p. 4.
[77] Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers, Committee Hansard, 23 January 2012, p. 13.
[78] Ms Pauline Vamos, Chief Executive Officer, Association of Superannuation Funds of Australia, Committee Hansard, 24 January 2012, p. 13.
[79] Ms Pauline Vamos, Chief Executive Officer, Association of Superannuation Funds of Australia, Committee Hansard, 24 January 2012, p. 13.
[80] Treasury, Future of Financial Advice Frequently Asked Questions, 'How does the ban on conflicted remuneration apply to risk insurance?', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=faq.htm#Q3_2 (accessed 10 February 2012).
[81] Ms Sue Vroombout, General Manager, Retail Investor Division, Treasury, Committee Hansard, 24 January 2012, p. 63.
[82] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard,
24 January 2012, p. 63.
[83] Treasury, Submission 22, p. 9.
[84] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, Explanatory Memorandum, p. 37.
[85] Treasury, Submission 22, p. 9.
[86] Financial Planning Association, Submission 62, p. 25.
[87] Financial Planning Association, Submission 62, pp 25–26.
[88] Burrell Stockbroking and Superannuation, Submission 11, p. 7.
[89] Financial Planning Association, Submission 62, p. 26.
[90] Mr Russel Tym, Submission 40, p. 3.
[91] Treasury, Submission 22, p. 9.
[92] Industry Super Network, Submission 12, p. 2; see also Joint Accounting Bodies, Supplementary Submission 23, pp 5–6.
[93] JCG requested that the Bill be amended to ensure that a licensee, or its representative, 'must not charge an asset-based fee for financial product advice if borrowed funds have been, are or will be used to acquire financial products by or on behalf of the client to which the financial product advice relates' and that asset-based fees be permissible only if all borrowed funds have been repaid at the time the fee is charged.
Joint Consumer Groups, Supplementary Submission 25, pp 10–11.
[94] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 49.
[95] Joint Consumer Groups, Supplementary Submission 25, pp 9–10.
[96] Westpac Group, Submission 64, p. 29.
[97] Westpac Group, Submission 64, p. 29.
[98] Westpac Group, Submission 64, p. 30.
[99] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, s1528.
[100] The Hon. Bill Shorten, MP, Minister for Financial Services and Superannuation, 'Future of Financial Advice Reforms – Draft Legislation', Media Release 127, 29 August 2011.
[101] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, ss 1528(1).
[102] Association of Financial Advisers, Submission 66, p. 12; Financial Services Council, Submission 58, pp 51–52.
[103] Australian Bankers Association, Submission 67, p. 40.
[104] Financial Services Council, Submission 58, p. 52.
[105] Treasury, Future of Financial Advice Frequently Asked Questions, 'Why weren't commissions banned retrospectively?', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=faq.htm#Q3_2 (accessed 10 February 2012).
[106] Australian Institute of Superannuation Trustees, Supplementary Submission 18, p. 5; Financial Services Council, Submission 58; Law Council of Australia, Submission 62; Westpac Group, Submission 64; Australian Bankers Association, Submission and Supplementary Submission 67.
[107] Committee Hansard, 24 January 2012, p. 58.
[108] Margaret Harrison-Smith, Parliamentary Library, 'Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011', Bills Digest No. 96, 2011-12, p. 11.
[109] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard,
24 January 2012, p. 58.
Chapter 6
[1] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, pp 7, 25.
[2] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 27.
[3] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 27.
[4] Jennifer McDermott, 'What's that: Shelf-space fees', The Australian, 9 June 2010.
[5] Treasury, Submission 22, pp 8–9.
[6] Professional Investment Services, Supplementary Submission 17, p. 9.
[7] Associated Advisory Practices, Supplementary Submission 20, p. 2.
[8] Associated Advisory Practices, Supplementary Submission 20, p. 3.
[9] Professional Investment Services, Supplementary Submission 17, p. 10.
[10] AMP Financial Services, Submission 43, p. 25.
[11] A benefit is presumed not to be a volume-based shelf-space fee if it is proved that all or part of the remuneration is a fee for service or a discount that does not exceed the reasonable value of scale efficiencies (see Treasury, Submission 22, p. 9).
[12] Industry Super Network, Supplementary Submission 12, p. 4.
[13] Vanguard Investments Australia Ltd, Submission 60, p. 2.
[14] Vanguard Investments Australia Ltd, Submission 60, p. 2.
[15] Macquarie Bank Limited, Submission 65, p. 2.
[16] Financial Services Council, Submission 58, p. 66.
[17] Law Council of Australia, Submission 55, p. 12.
[18] Treasury, answer to question on notice, 24 January 2012, (received 10 February 2012), p. 2.
[19] Australian Securities and Investments Commission, Supplementary Submission 28, p. 20.
[20] The Treasury, Future of Financial Advice: Frequently Asked Questions, 'What happens to consumers who sign up to products between now and 1 July 2012 (commencement date of reforms)?' http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=faq.htm (accessed 3 February 2012).
[21] Boutique Financial Planning Principals Group, Submission 48, p. 7.
[22] Corporations Amendment (Future of Financial Advice) Bill 2011.
[23] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 16.
[24] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011.
[25] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 38.
[26] Law Council of Australia, Submission 55, p. 13.
[27] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 30.
[28] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 24.
[29] The Westpac Group, Submission 64, p. 27; Financial Planning Association, Submission 62, p. 22.
[30] The Westpac Group, Submission 64, p. 27.
[31] Australian Bankers' Association, Submission 67, p. 38.
[32] Financial Services Council, Submission 58, p. 82.
[33] Financial Services Council, Submission 58, pp 82–83.
[34] Financial Services Council, Submission 58, pp 82–83.
[35] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 30.
[36] Joint Consumer Groups, Supplementary Submission 25, p. 6.
[37] Joint Consumer Groups, Supplementary Submission 25, p. 8.
[38] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 31.
[39] Financial Services Council, Submission 58, p. 82; Australian Bankers Association, Submission 67, p. 38.
[40] Financial Services Council, Submission 58, p. 82.
[41] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 31.
[42] Australian Institute of Superannuation Trustees, Supplementary Submission 18, p. 4; IOOF Holdings Limited, Submission 19, p. 6; Associated Advisory Practices, Submission 20, p. 8; AMP Financial Services, Submission 43, p. 23; Financial Services Council, Submission 58, p. 83; Financial Planning Association, Submission 62, p. 23; Association of Financial Advisers Ltd, Submission 66, p. 15; Australian Bankers' Association, Submission 67, p. 39.
[43] Professional Investment Services, Supplementary Submission 17, p. 3.
[44] Professional Investment Services, Supplementary Submission 17, p. 14
[45] IOOF Holdings Limited, Submission 19, p. 7.
[46] AMP Financial Services, Submission 43, p. 23.
[47] Senate Standing Committee for the Scrutiny of Bills, Alert Digest No. 1 of 2012, 8 February 2012, p iii.
[48] Senate Standing Committee for the Scrutiny of Bills, Alert Digest No. 1 of 2012, 8 February 2012, pp 7–8.
Chapter 7 - The matter of carve-outs: basic banking, stockbroking and the timeshare industry
[1] Treasury, Supplementary Submission 22, p. 5.
[2] Treasury, Submission 22, p. 8.
[3] Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, s961F.
[4] Treasury, Future of Financial Advice Frequently Asked Questions, 'How will the ban on conflicted remuneration structures affect stockbrokers?', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=faq.htm#Q3_2 (accessed 10 February 2012).
[5] Abacus – Australian Mutuals, Supplementary Submission 14, p. 8.
[6] There will be a limited carve-out from the ban on volume payments and best interests duty for basic banking products where employees of an Australian [authorised] Deposit-taking Institution (ADI) are advising on and selling their employer ADI basic banking products.
(Future of Financial Advice Information Pack. Section 2.8. 28 April 2011).
[7] Australian Bankers' Association Inc, Submission 67, p. 3.
[8] Australian Bankers' Association, Submission 67, pp 2, 5.
[9] Australian Bankers' Association, Submission 67, p. 5.
[10] Mr Steve Münchenberg, Chief Executive Officer, Australian Bankers' Association,
Committee Hansard, 23 January 2012, p. 22.
[11] ANZ Wealth, Supplementary Submission 29, p. 4.
[12] ANZ Wealth, Supplementary Submission 29, p. 4.
[13] See Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 28.
[14] ANZ Wealth, Supplementary Submission 29, p. 4.
[15] Australian Bankers Association, Submission 67, pp 22–23
[16] Joint Consumer Groups, Supplementary Submission 25, p. 8.
[17] Joint Consumer Groups, Supplementary Submission 25, p. 7.
[18] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 33.
[19] Abacus – Australian Mutuals, Supplementary Submission 14, p. 6.
[20] ANZ Wealth, Supplementary Submission 29, p. 6, see also Proof Committee Hansard, 24 January 2012, pp 6–7.
[21] Abacus – Australian Mutuals, Supplementary Submission 14, p. 6.
[22] Australian Bankers' Association, Submission 67, p. 8.
[23] Australian Bankers' Association, Submission 67, p. 8.
[24] ANZ Wealth, Supplementary Submission 29, p. 7.
[25] Australian Bankers' Association, Submission 67, p. 7.
[26] The EM notes that the definition of basic banking product in the Bill 'provides flexibility to add additional products in the future if it is considered appropriate...given the constant rate of development in the financial product market'. Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 15.
[27] Australian Bankers' Association, Submission 67, p. 7.
[28] Abacus – Australian Mutuals, Supplementary Submission, pp 6, 8.
[29] Australian Securities and Investments Commission, Consultation Paper 169: Term deposits that are only breakable on 31 days' notice: Proposals for relief, November 2011, p. 9.
[30] Abacus – Australian Mutuals, Supplementary Submission 14, p. 8; Australian Bankers' Association, Submission 67, p. 8.
[31] ANZ Wealth, Supplementary Submission 29, p. 7.
[32] Joint Consumer Groups, Supplementary Submission 25, p. 7.
[33] Joint Consumer Groups, Supplementary Submission 25, p. 7.
[34] Insurance Council of Australia, Supplementary Submission 39, p. 4.
[35] Treasury, answer to question on notice, 24 January 2012, (received 10 February 2012), p. 1.
[36] AMP Financial Services, Submission 43, p. 21; Financial Services Council, Submission 58, p. 77.
[37] Treasury, Future of Financial Advice Frequently Asked Questions, 'Why is there a carve-out for basic banking products?', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=faq.htm#Q3_11 (accessed 3 February 2012).
[38] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 30.
[39] Explanatory Memorandum, Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, p. 30.
[40] The Hon. Bill Shorten, MP, Minister for Financial Services and Superannuation, 'Future of Financial Advice Reforms – Draft Legislation', Media Release 127, 29 August 2011.
[41] Mr Doug Clark, Policy Executive, Stockbrokers Association of Australia, Committee Hansard, 23 January 2012, p. 51.
[42] Mr Doug Clark, Policy Executive, Stockbrokers Association of Australia, Committee Hansard, 23 January 2012, p. 52.
[43] ANZ Wealth, Supplementary Submission 29, p. 8.
[44] Ms Sue Vroombout, General Manager, Retail Investor Division, Treasury, Committee Hansard, 24 January 2012, p. 65.
[45] Treasury, Future of Financial Advice Frequently Asked Questions, 'How will the ban on conflicted remuneration structures affect stockbrokers?', http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=faq.htm#Q3_2 (accessed 10 February 2012).
[46] Wyndham Vacation Resorts Asia Pacific Pty Ltd, Submission 46, p. 3.
[47] Australian Timeshare and Holiday Ownership Council, Submission 45.
[48] Accord Vacation Club, Submission 54, p. 4.
[49] Classic Holidays, Submission 36, p. 1; Australian Timeshare and Holiday Ownership Council, Submission 45, p. 5; The Holiday Club, Submission 47, p. 1; Accommodation Association of Australia, Submission 63, p. 1.
[50] Gold Coast Tourism Corporation Ltd, Submission 35, p. 1; Queensland Tourism Industry Council, Submission 56, p. 2.
[51] Classic Holidays, Submission 36, p. 1.
[52] Mr Barry Robinson, CEO, Australian Timeshare and Holiday Ownership Council Ltd, Committee Hansard, 24 January 2012, p. 33.
[53] Mr Barry Robinson, CEO, Australian Timeshare and Holiday Ownership Council Ltd, Committee Hansard, 24 January 2012, p. 34.
[54] Australian Timeshare and Holiday Ownership Council Ltd, Submission 45, pp 3–4.
[55] Mr Barry Robinson, CEO, Australian Timeshare and Holiday Ownership Council Ltd, Committee Hansard, 24 January 2012, p. 37.
[56] Australian Timeshare and Holiday Ownership Council Ltd, Submission 45, p. 4.
Chapter 8 - Discretionary powers of the Australian Securities and Investments Commission
[1] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p. 20.
[2] Australian Securities and Investments Commission, Submission 28, p. 6.
[3] Treasury, Submission 22, p. 8.
[4] Australian Securities and Investments Commission, Submission 28, pp 7, 8–9.
[5] Australian Securities and Investments Commission, Submission 28, p. 7.
[6] Australian Securities and Investments Commission, Submission 28, p. 7.
[7] Mr Peter Kell, Commissioner, Australian Securities and Investments Commission, Proof Committee Hansard, 24 January 2012, pp 72–73.
[8] Explanatory Memorandum, Corporations Amendment (Future of Financial Advice) Bill 2011, p.18; Australian Securities and Investments Commission, Submission 28, pp 3–4.
[9] Australian Securities and Investments Commission, Submission 28, p. 8.
[10] Treasury, Submission 22, pp 7-8.
[11] Australian Securities and Investments Commission, Submission 28, p. 9.
[12] Chartered Secretaries Australia Ltd, Submission 13, p. 4; Abacus – Australian Mutuals, Submission 14, p. 1; Trustee Corporations Association of Australia, Submission 16, p. 2; Boutique Financial Planning Principals Group, Submission 48, p. 6.
[13] Association of Financial Advisers, Submission 67, p. 5; Industry Super Network, Submission 12, p. 5; Financial Services Council, Submission 58, p. 21; Mr Reece Agland, Manager Member Integrity, Institute of Public Accountants, Joint Accounting Bodies, Committee Hansard, 24 January 2012, p. 54.
[14] Australian Institute of Superannuation Trustees, Submission 18, p. 4.
[15] Mr Reece Agland, Manager Member Integrity, Institute of Public Accountants, Committee Hansard, 24 January 2012, p. 54.
[16] Australasian Securities Dealers Association Inc, Submission 10, pp 3–4.
[17] Financial Services Council, Submission 58, p. 21.
[18] Explanatory Memorandum, p. 22.
[19] Australian Securities and Investments Commission, Regulatory Guide 8: Hearings practice manual, March 2002, pp 3, 4.
[20] Australian Securities and Investments Commission, Regulatory Guide 8: Hearings practice manual, March 2002, p. 24.
[21] Stockbrokers Association of Australia, Submission 8, p. 10; Joint Accounting Bodies, Submission 23, p. 2; National Insurance Brokers Association of Australia, Submission 59, p. 8.
[22] Law Council of Australia, Submission 55, p. 3.
[23] Financial Planning Association of Australia, Submission 62, p. 15.
[24] Australian Bankers' Association, Submission 67, p. 40.
[25] Joint Accounting Bodies, Submission 23, pp 4-5; see also Mr Reece Agland, Manager Member Integrity, Institute of Public Accountants, Joint Accounting Bodies, Committee Hansard, 24 January 2012, p. 54.
[26] The Westpac Group, Submission 64, p. 11.
[27] Explanatory Memorandum, pp 22-23.
[28] Australian Securities and Investments Commission, Supplementary Submission 28, p. 3; Mr Peter Kell, Commissioner, Australian Securities and Investments Commission, Committee Hansard, 24 January 2012, p. 73.
Chapter 9
[1] Rice Warner Actuaries, 'The Financial Advice Industry post-FOFA', January 2012, p. 3.
[2] See 7.30 Report, 'Financial planners fight for industry reform', ABC Television, 15 February 2012, http://www.abc.net.au/7.30/content/2012/s3431811.htm (accessed 20 February 2012). ASIC Summer School: 'Building resilience in turbulent times', 'Good advice: the impact of FOFA', 20 February 2012. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ASIC-SS12-Program-16-Feb-2012.pdf/$file/ASIC-SS12-Program-16-Feb-2012.pdf (accessed 20 February 2012).
[3] Explanatory Memorandum, p. 43.
[4] Explanatory Memorandum, p. 44.
[5] See, for example, Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers, Committee Hansard, 23 January 2012, pp 12, 14.
[6] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 59.
[7] Rice Warner Actuaries, 'The Financial Advice Industry post-FOFA', January 2012, p. 8.
[8] Rice Warner Actuaries, 'The Financial Advice Industry post-FOFA', January 2012, p. 5.
[9] Rice Warner Actuaries, 'The Financial Advice Industry post-FOFA', January 2012, p. 4.
[10] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 59.
[11] Rice Warner Actuaries, 'The Financial Advice Industry post-FOFA', January 2012, pp 38–39.
[12] Mr Craig Meller, Managing Director, AMP Financial Services, Committee Hansard, 23 January 2012, p. 3.
[13] Andrew Main, '35,000 jobs at risk as advice reforms bite', The Australian, 24 January 2012, p. 17.
[14] Mr Jim Murphy, Executive Director, Markets Group, Department of the Treasury, Committee Hansard, 24 January 2012, p. 58.
[15] Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers Ltd, Committee Hansard, 23 January 2012, p. 18.
[16] Mr Craig Meller, Managing Director, AMP Financial Services, Committee Hansard, 23 January 2012, p. 9.
[17] Mr Grahame Evans, Group General Manager, Professional Investment Services, Committee Hansard, 23 January 2012, p. 74.
[18] Mr Grahame Evans, Group General Manager, Professional Investment Services, Committee Hansard, 23 January 2012, p. 74.
[19] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 62.
[20] Rice Warner Actuaries, 'The Financial Advice Industry post-FOFA', January 2012, p. 3.
[21] Explanatory Memorandum, p. 61.
[22] See chapter 3. Rice Warner's submission to the government citing figures is available at: http://www.ricewarner.com/images/newsroom/1316044106_The%20Cost%20of%20Opt-in_Government%20Submission.pdf (accessed 14 February 2012).
[23] Rice Warner, 'The Cost of Opt-in', Submission to the government, 15 September 2011, p. 4 http://www.ricewarner.com/images/newsroom/1316044106_The%20Cost%20of%20Opt-in_Government%20Submission.pdf (accessed 14 February 2012).
[24] Mr Craig Meller, Managing Director, AMP Financial Services, Committee Hansard, 23 January 2012, p. 8.
[25] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 42.
[26] Burrell Stockbroking and Superannuation, Submission 11, p. 2.
[27] Financial Services Council, Submission 58, p. 7.
[28] Ms C. Storniolo, Senior Policy Manager, Financial Services Council, Committee Hansard,
23 January 2012, p. 37.
[29] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 42.
[30] Mr Alastair Kinloch, Director, Government Affairs, Committee Hansard, 23 January 2012, p. 8.
[31] Department of Finance and Deregulation, Office of Best Practice Regulation, 'Non-compliance with best practice regulation requirements—Future of Financial Advice—Treasury', http://ris.finance.gov.au/2011/08/08/non-compliance-with-best-practice-regulation-requirements-%e2%80%93-future-of-financial-advice-2011-%e2%80%93-treasury-2/ (accessed 31 January 2012).
[32] Mr Jason McNamara, Senate Finance and Public Administration Legislation Committee, Proof Committee Hansard, 14 February 2012, p. 30.
[33] Mr McNamara, Senate Finance and Public Administration Legislation Committee, Proof Committee Hansard, 14 February 2012, p. 30.
[34] Mr Jim Murphy, Executive Director, Markets Group, Department of the Treasury Committee Hansard, 24 January 2012, p. 60.
[35] Mr Jim Murphy, Executive Director, Markets Group, Department of the Treasury Committee Hansard, 24 January 2012, p. 60.
[36] Mr Craig Meller, Managing Director, AMP Financial Services, Committee Hansard, 23 January 2012, p. 1.
[37] Mr John Brogden, Chief Executive Officer, Financial Services Council, Committee Hansard, 23 January 2012, p. 35.
[38] Ms Pauline Vamos, Chief Executive Officer, ASFA, Committee Hansard, 24 January 2012,
p. 16.
[39] Mr John Price, Senior Executive Leader, Strategy and Policy, ASIC, Committee Hansard,
24 January 2012, p. 68.
Chapter 10
[1] The Hon. Chris Bowen MP, 'Overhaul of financial advice', Media release 36, 26 April 2010. http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/036.htm&pageID=003&min=ceba&Year=&DocType=0 (accessed 21 February 2012).
[2] The Hon. Bill Shorten MP, 'Future of financial advice prioritises consumers', Media Release No. 64, 28 April 2011 http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2011/064.htm&pageID=003&min=brs&Year&DocType (accessed 27 January 2012).
[3] The Hon. Bill Shorten MP, 'Future of financial advice prioritises consumers', Media Release No. 64, 28 April 2011 http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2011/064.htm&pageID=003&min=brs&Year&DocType (accessed 27 January 2012).
[4] Treasury, Exposure draft—Corporations Amendment Future of Financial Advice Bill 2011, http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=consultation/corporations_amend/default.htm (accessed 21 February 2012).
[5] Treasury, Exposure draft—Corporations Amendment Further Future of Financial Advice Bill 2011, http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=consultation/corporations_further/default.htm (accessed 21 February 2012).
[6] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 58.
[7] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 59.
[8] Mr Paul Barrett, General Manager, Advice and Distribution, ANZ Wealth, Committee Hansard, 24 January 2012, p. 9.
[9] Mr John Brogden, Chief Executive Officer, Financial Services Council, Committee Hansard, 23 January 2012, p. 35.
[10] Mr David Whiteley, Chief Executive, Industry Super Network, Committee Hansard,
24 January 2012, p. 18.
[11] Ms Robbie Campo, Manager, Strategy, Industry Super Network, Committee Hansard, 24 January 2012, p. 23.
[12] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 41.
[13] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 41.
[14] Mr Richard Klipin, Association of Financial Advisers, Committee Hansard, 23 January 2012, p. 16.
[15] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 41. See also Mr Dante de Gori, General Manager, Financial Planning Association, Committee Hansard, 23 January 2012, p. 44–45.
[16] Ms Cecilia Storniolo, Senior Policy Manager, Financial Services Council, Committee Hansard, 23 January 2012, pp 35–36.
[17] Ms Robbie Campo, Manager, Strategy, Industry Super Network, Committee Hansard,
24 January 2012, p. 23.
[18] Ms Jenni Mack, Chair of Governance Committee, Choice, Submission 69, p. 1.
[19] Australian Government, 'Future of Financial Advice—Information Pack', 28 April 2011, p. 8. http://ministers.treasury.gov.au/Ministers/brs/Content/pressreleases/2011/attachments/064/064.pdf (accessed 1 February 2012).
[20] The Hon. Bill Shorten MP, Minister for Financial Services and Superannuation, 'Future of Financial Advice Reforms— Draft Legislation', Media Release No. 127, 29 August 2011 http://mfss.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2011/127.htm&pageID=003&min=brs&Year=&DocType=0
[21] Ms Jenni Mack, Chair of Governance Committee, Choice, Submission 69, p. 1.
[22] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 59.
[23] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 59.
[24] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 63; Dr Richard Sandlant, Manager, Financial Advice Reform Unit, Retail Investor Division, Treasury, Committee Hansard, 24 January 2012, p. 67.
[25] Mr Richard Klipin, Association of Financial Advisers, Committee Hansard, 23 January 2012, p. 18;. Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 49; Mr Douglas Latto, President, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 76; Mr John Brodgen, Chief Executive Officer, Financial Services Council, Committee Hansard, 23 January 2012, p. 35; Mr Paul Barrett, General Manager, Advice and Distribution, ANZ Wealth, Committee Hansard,
24 January 2012, p. 2.
[26] Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011. At the time of writing, the committee was inquiring into the provisions of this bill for report by 13 March 2012. The committee is aware there are a further two tranches of the MySuper legislation. The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 was introduced into the parliament on 16 February 2012.
[27] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Committee Hansard, 23 January 2012, p. 41.
[28] Mr John Brodgen, Chief Executive Officer, Financial Services Council, Committee Hansard, 23 January 2012, p. 35.
[29] Mr Douglas Latto, President, Corporate Superannuation Specialist Alliance, Committee Hansard, 23 January 2012, p. 76.
[30] Mr David Horsfield, Managing Director and Chief Executive Officer, Stockbrokers' Association of Australia, Committee Hansard, 23 January 2012, p. 50.
[31] Associate Professor Joanna Bird, Committee Hansard, 23 January 2012, p. 61.
[32] ANZ Wealth, Submission 29, pp 5–7.
[33] ANZ Wealth, Submission 29, pp 5–7.
[34] ANZ Wealth, Submission 29, p. 4; Mr Paul Barrett, General Manager, Advice and Distribution, ANZ Wealth, Committee Hansard, 24 January 2012, p. 2.
[35] Mr David Whiteley, Chief Executive, Industry Super Network, Committee Hansard,
24 January 2012, p. 24.
[36] Mr Jim Murphy, Executive Director of Markets Group, Treasury, Committee Hansard, 24 January 2012, p. 64.
[37] Australian Securities and Investments Commission, Supplementary Submission 28, p. 3. See also, Mr John Price, Senior Executive Leader, Strategy and Policy, ASIC, Committee Hansard, 24 January 2012, p. 76.
[38] Mr Jim Murphy, Executive Director of Markets Group, Treasury, Proof Committee Hansard, Senate Economics Legislation Committee, Senate Estimates, 16 February 2012, p. 50.
[39] Mr John Brodgen, Chief Executive Officer, Financial Services Council, Committee Hansard, 23 January 2012, p. 30.
[40] Mr Jim Murphy, Executive Director, Markets Group, Treasury, Proof Committee Hansard, Senate Economics Legislation Committee, Senate Estimates, 16 February 2012, p. 53.
[41] Mr John Brodgen, Chief Executive Officer, Financial Services Council, Committee Hansard, 23 January 2012, p. 35.
[42] Ms Sue Vroombout, General Manager, Retail Investor Division, Treasury, Committee Hansard, 24 January 2012, p. 64.
Dissenting Report by Coalition members of the Committee
[1] Parliamentary Joint Committee on Corporations and Financial Services Inquiry into financial products and Services in Australia, page 87, paragraph 5.75: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=corporations_ctte/fps/report/c05.htm#anc3/index.htm (accessed on 28 February 2012);
[2] Department of Finance and Deregulation, Office of Best Practice Regulation, 'Non-compliance with best practice regulation requirements—Future of Financial Advice—Treasury', http://ris.finance.gov.au/2011/08/08/non-compliance-with-best-practice-regulation-requirements-%e2%80%93-future-of-financial-advice-2011-%e2%80%93-treasury-2/ (accessed 31 January 2012) and Mr Jason McNamara, Senate Finance and Public Administration Legislation Committee, Proof Committee Hansard, 14 February 2012, p. 30.
[3] Industry Super Network submission to the Inquiry into Financial Products and Services by the Joint Parliamentary Committee on Corporations and Financial Services, August 2009, page 18: "ISN proposes that clients should opt-in, on an annual basis and in writing, to receive and pay for financial advice" (Submission 380: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=corporations_ctte/fps/submissions/sublist.htm - accessed 28 February 2012);
[4] Mr John Brogden, Chief Executive Officer, Financial Services Council, Proof Committee Hansard, 23 January 2012, p. 30.
[5] Mr Craig Meller, Managing Director, AMP Financial Services, Proof Committee Hansard, 23 January 2012, p. 3.
[6] Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers, Proof Committee Hansard, 23 January 2012, p. 12.
[7] Mr Craig Meller, Managing Director, AMP Financial Services, Proof Committee Hansard, 23 January 2012, p. 9.
[8] Mr Grahame Evans, Group General 17,934Manager, Professional Investment Services, Proof Committee Hansard, 23 January 2012, p. 71.
[9] Mr Grahame Evans, Group General Manager, Professional Investment Services, Proof Committee Hansard, 23 January 2012, p. 72.18,313
[10] Department of Finance and Deregulation, Office of Best Practice Regulation, 'Non-compliance with best practice regulation requirements—Future of Financial Advice—Treasury', http://ris.finance.gov.au/2011/08/08/non-compliance-with-best-practice-regulation-requirements-%e2%80%93-future-of-financial-advice-2011-%e2%80%93-treasury-2/ (accessed 31 January 2012).
[11] Mr Jason McNamara, Senate Finance and Public Administration Legislation Committee, Proof Committee Hansard, 14 February 2012, p. 30.
[12] Mr Craig Meller, Managing Director, AMP Financial Services, Proof Committee Hansard, 24 January 2012, p. 2.
[13] Mr John Borgden, Chief Executive Officer, Financial Services Council, Proof Committee Hansard, 23 January 2012, p. 30.
[14] Mr Richard Klipin, Association of Financial Advisers, Proof Committee Hansard, 23 January 2012, p. 18.
[15] Mr Mark Rantall, Chief Executive Officer, Financial Planning Association, Proof Committee Hansard, 23 January 2012, p. 48.
[16] Mr Douglas Latto, Proof Committee Hansard, 23 January 2012, p. 74.
[17] Mr John Brodgen, Chief Executive Officer, Financial Services Council, Proof Committee Hansard, 23 January 2012, p. 34.
[18] Mr Paul Barrett, General Manager, ANZ Wealth, Proof Committee Hansard, 24 January 2012, p. 2.
[19] Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011. At the time of writing, the committee was inquiring into the provisions of this bill for report by 13 March 2012. The committee is aware there are a further two tranches of the MySuper legislation, one of which was introduced into the parliament on 16 February 2012.
[20] Mr John Brodgen, Chief Executive Officer, Financial Services Council, Proof Committee Hansard, 23 January 2012, p. 35.
[21] Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers Ltd., Proof Committee Hansard, 23 January 2012, p. 12.
[22] Mr Meller, Proof Committee Hansard, 23 January 2012, pp. 4–5.
[23] Professional Investment Services, Submission 17, p.3 & 5; see also IOOF, Submission 19, p. 5.
[24] Financial Planning Association of Australia Limited, Submission 62, p. 7
[25] Mr Richard Klipin, Proof Committee Hansard, 23 January 2012, p. 20
[26] Financial Ombudsman Service, Submission 15, p. 3
[27] Mr Dante De Gori, Proof Committee Hansard, 23 January 2012, p. 43. See also evidence provided by Mr Santucci, President, Boutique Financial Planning Principles Group; Ms Cargakis, General Manager, Associated Advisory Practices; and Ms Petrik, Corporate Development Manager, Professional Investment Services, Proof Committee Hansard, 23 January 2012, p. 69.
[28] Mr Richard Klipin, Proof Committee Hansard, 23 January 2012, p. 16.
[29] AMP Financial Services, Submission 43, p. 12
[30] Ms Cecilia Storniolo, Senior Policy Manager, Proof Committee Hansard, 23 January 2012, pp 34–35.
[31] AMP Financial Services, Submission 43, p.12.
[32] AMP Financial Services, Submission 43, p.13.
[33] Financial Services Council, Submission 58, p. 7; Proof Committee Hansard, 23 January 2012, p. 36.
[34] The Trust Company, Submission 53, p. 11.
[35] The Trust Company, Submission 53, pp 2, 7.
[36] Joint Consumer Submission, Submission 25, p. 11.
[37] Financial Services Council, Submission 58, p. 42.
[38] AMP Financial Services, Submission 43, p. 16; Mr Paul Barrett, General Manager, Advice and Distribution, ANZ Wealth, Proof Committee Hansard, 24 January 2012, p. 4; Associated Advisory Practices, Supplementary Submission 20, p. 6.
[39] Law Council of Australia, Submission 55, p. 4.
[40] Financial Services Council, Submission 58, p. 41.
[41] Association of Financial Advisers Ltd, Submission 66, p. 12; Association of Superannuation Funds of Australia, Supplementary Submission 1, pp 2–4; AMP Financial Services, Submission 43, p. 17; Westpac Group, Submission 64, p. 15; Professional Investment Services, Supplementary submission 17, pp 5–6.
[42] Financial Services Council, Submission 58, p. 46; Australian Bankers' Association, Submission 67, p. 17.
[43] Financial Services Council, Submission 68, pp 45–46.
[44] Minister’s Media Release, 28 April 2010, http://www.treasurer.gov.au/Ministers/brs/Content/pressreleases/2011/attachments/064/064.pdf.
[45] IOOF Holdings Limited, Submission 19, p. 4.
[46] Association of Financial Advisers, Submission 66, p. 11.
[47] IOOF Holdings Limited, Submission 19, p. 4.
[48] Mr Richard Klipin, Chief Executive Officer, Association of Financial Advisers, Committee Hansard, 23 January 2012, p. 13.
[49] Committee Hansard, 24 January 2012, p. 13.
[50] Law Council of Australia, Submission 5, p. 9.
[51] Financial Services Council, Submission 58, p. 76.
[52] AMP Financial Services, Submission 43, p. 24; See also Financial Services Council, Submission 58, p. 79.
[53] The Westpac Group, Submission 64, p. 22.
[54] Financial Services Council, Submission 58, p. 81.
[55] Financial Services Council, Submission 58, p. 81 – 82.
[56] AMP Financial Services, Submission 43, p. 23.
[57] Financial Services Council, Submission 58, p. 82 – 83.
[58] Financial Services Council, Submission 58, p. 84.
[59] Financial Services Council, Submission 58, p. 59 – 60.
[60] Australian Bankers Association, Submission 67, p. 40.
[61] Professional Investment Services, Submission 17 (supplementary), p. 3.
[62] Professional Investment Services, Submission 17 (supplementary), p. 12.
[63] Financial Services Council, Submission 58, p. 38.
[64] Professional Investment Services, Submission 17 (supplementary), p.3.
[65] Mr Reece Agland, Manager Member Integrity, Institute of Public Accountants, Committee Hansard, 24 January 2012, p. 54.
[66] Law Council of Australia, Submission 55, p. 3.
[67] Financial Services Council, Submission 58, p. 21.