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| Financial advice rule changes likely to be struck down by Senate | Financial advice rule changes likely to be struck down by Senate |
| (35 minutes later) | |
| The federal government’s financial advice rules look set to be struck down by the Senate, with the Palmer United party leader, Clive Palmer, reiterating he will not support the current laws. | The federal government’s financial advice rules look set to be struck down by the Senate, with the Palmer United party leader, Clive Palmer, reiterating he will not support the current laws. |
| The future of financial advice (Fofa) regulation took effect on 1 July but can still be challenged in the Senate. The changes have been criticised by some consumer and industry groups for weakening consumer protections for financial advice by creating a series of loopholes in Labor’s earlier Fofa laws. | The future of financial advice (Fofa) regulation took effect on 1 July but can still be challenged in the Senate. The changes have been criticised by some consumer and industry groups for weakening consumer protections for financial advice by creating a series of loopholes in Labor’s earlier Fofa laws. |
| The success of a challenge to the amendments is largely dependent on the support of the PUP senators, with Labor and the Greens indicating they will vote to remove it. | The success of a challenge to the amendments is largely dependent on the support of the PUP senators, with Labor and the Greens indicating they will vote to remove it. |
| When asked about the PUP’s stance in a press conference on Monday afternoon, Palmer said: “If the regulations are as they were last week and they don’t change we’ll definitely vote against it.” | When asked about the PUP’s stance in a press conference on Monday afternoon, Palmer said: “If the regulations are as they were last week and they don’t change we’ll definitely vote against it.” |
| It is not possible to amend a regulation that has been registered and tabled, which suggests the challenge will gain the support of the PUP senators. | It is not possible to amend a regulation that has been registered and tabled, which suggests the challenge will gain the support of the PUP senators. |
| Labor, the Greens and the PUP senator voting bloc – including the Australian Motorist Enthusiast party senator Ricky Muir – have enough votes to defeat the regulation. | Labor, the Greens and the PUP senator voting bloc – including the Australian Motorist Enthusiast party senator Ricky Muir – have enough votes to defeat the regulation. |
| But Palmer added later in the press conference there was still “no resolution at the moment” and said he had been in discussions with the government. | But Palmer added later in the press conference there was still “no resolution at the moment” and said he had been in discussions with the government. |
| “We haven’t had a formal negotiation,” he said. “We’ve just had a discussion where we explained why we don’t think the current amendments are in the best interests of Australians, and that’s what we said.” | “We haven’t had a formal negotiation,” he said. “We’ve just had a discussion where we explained why we don’t think the current amendments are in the best interests of Australians, and that’s what we said.” |
| Guardian Australia understands the PUP and the government have been consulting over potential modifications that could be made to the rules that the PUP would support. The government would need to introduce a new regulation for this to occur. | |
| It is also understood Labor will bring forward the motion to disallow the regulation on Monday and a vote will occur on Tuesday, the last day the regulation can be challenged. | |
| The Labor senator Claire Moore proposed the changes be raised as a matter of public importance in the Senate on Monday afternoon. | The Labor senator Claire Moore proposed the changes be raised as a matter of public importance in the Senate on Monday afternoon. |
| Her colleague Lisa Singh said during the debate: “All the government’s words and comments on their changes to Fofa are all about certainty for the sector, perhaps, but not for the consumer. They are certainly weighted in the wrong direction.” | Her colleague Lisa Singh said during the debate: “All the government’s words and comments on their changes to Fofa are all about certainty for the sector, perhaps, but not for the consumer. They are certainly weighted in the wrong direction.” |
| Despite the regulation coming into effect on 1 July the government only tabled it last Thursday, after Labor succeeded in a series of procedural motions that have given it the opportunity to bring a disallowance motion. | Despite the regulation coming into effect on 1 July the government only tabled it last Thursday, after Labor succeeded in a series of procedural motions that have given it the opportunity to bring a disallowance motion. |
| The finance minister, Mathias Cormann, said in question time last week that the government had wanted to give crossbench senators every opportunity to consider the regulation. | The finance minister, Mathias Cormann, said in question time last week that the government had wanted to give crossbench senators every opportunity to consider the regulation. |
| “I was very conscious of the fact that we had a number of new crossbench senators joining us here this week who had a lot on their plates with the carbon tax, in particular, and I was very concerned to ensure that my friends on the crossbench had the opportunity to be properly briefed on what was an important area of public policy,” he said. | “I was very conscious of the fact that we had a number of new crossbench senators joining us here this week who had a lot on their plates with the carbon tax, in particular, and I was very concerned to ensure that my friends on the crossbench had the opportunity to be properly briefed on what was an important area of public policy,” he said. |
| It is still unclear how the Democratic Labour party senator John Madigan and the Family First senator Bob Day intend to vote if a disallowance motion is brought. The independent Nick Xenophon has indicated he will vote to disallow the regulation. | It is still unclear how the Democratic Labour party senator John Madigan and the Family First senator Bob Day intend to vote if a disallowance motion is brought. The independent Nick Xenophon has indicated he will vote to disallow the regulation. |
| On Monday the Liberal Democratic senator David Leyonhjelm indicated he supported the government’s stance. “I've satisfied myself that the Fofa regulations the minister is bringing forward are a reasonable compromise,” he said. | On Monday the Liberal Democratic senator David Leyonhjelm indicated he supported the government’s stance. “I've satisfied myself that the Fofa regulations the minister is bringing forward are a reasonable compromise,” he said. |
| “In an ideal world I would like the disclosure of fees to be greater for legacy arrangements and also in an ideal world I would like clients of financial planners [for legacy arrangements] … to have the option of opting out.” | “In an ideal world I would like the disclosure of fees to be greater for legacy arrangements and also in an ideal world I would like clients of financial planners [for legacy arrangements] … to have the option of opting out.” |