Consumer groups, banks and the Senate support FoFA - will Abbott?

With the news today that ANZ has thrown its support behind Labor's Future of Financial Advice reforms, the Abbott Government is looking increasingly isolated in its attempts to water down consumer protections.

MEDIA RELEASE

CONSUMER GROUPS, BANKS AND THE SENATE SUPPORT FOFA - WILL ABBOTT?

One of Australia’s largest banks has added its voice to the chorus of support for Labor’s Future of Financial Advice reforms, proving the Abbott Government’s plans to water them down go too far.

In a submission to the Senate Economics Committee, the ANZ bank has stated:

“ANZ believes the current regulatory framework, including the recent Future of Finance Advice changes, will improve the quality of advice and has put in place a framework to protect consumers from poor advice.”

- ANZ Submission to Scrutiny of Financial Advice inquiry     

In backing Labor’s reforms, the bank joins many other major organisations which have warned that rolling back the FoFA package will put Australians’ retirement savings at risk.

National Seniors Australia, CHOICE, AustralianSuper, the Council on the Ageing and dozens of other consumer groups have already called for the government to leave the reforms intact.

Like Labor, they are concerned that removing key protections for financial advice customers leaves Australians exposed to the risk of another major collapse like that of Storm Financial.  

Despite the Senate last year rejecting the Abbott Government’s attempt to gut consumer protections on financial advice, it remains government policy.

If it won’t listen to the consumer groups, perhaps new Assistant Treasurer Josh Frydenberg might turn an ear to ANZ, who believe that a strong financial advice industry rests on solid consumer protections.  

MONDAY, 12 JANUARY 2015

MEDIA CONTACT: JENNIFER RAYNER 0428 214 856


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