This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/world/2014/jul/15/pup-deal-allows-government-to-save-its-financial-advice-regulations
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| PUP deal allows government to save its financial advice regulations | PUP deal allows government to save its financial advice regulations |
| (about 1 month later) | |
| The federal government has avoided the embarrassment of its financial advice regulations being disallowed in the Senate after it agreed to a series of last-minute Palmer United party changes, which industry experts said would deliver little consumer protection. | The federal government has avoided the embarrassment of its financial advice regulations being disallowed in the Senate after it agreed to a series of last-minute Palmer United party changes, which industry experts said would deliver little consumer protection. |
| A letter from the finance minister, Mathias Cormann, to Clive Palmer indicated a number of changes the government would make to the existing regulations within 90 days. | A letter from the finance minister, Mathias Cormann, to Clive Palmer indicated a number of changes the government would make to the existing regulations within 90 days. |
| The changes include a requirement for financial advisers to act in the best interests of their clients, mandatory fee disclosure statements, a 14-day cooling off period for financial products and the right of consumers to change financial advisers. | The changes include a requirement for financial advisers to act in the best interests of their clients, mandatory fee disclosure statements, a 14-day cooling off period for financial products and the right of consumers to change financial advisers. |
| The government has been furiously negotiating with crossbenchers over the weekend, leading to speculation that a deal may have been secured with the PUP. | The government has been furiously negotiating with crossbenchers over the weekend, leading to speculation that a deal may have been secured with the PUP. |
| The negotiations between the government and the PUP continued until the very last minute, leaving industry groups in the dark about whether the regulations would be disallowed. | The negotiations between the government and the PUP continued until the very last minute, leaving industry groups in the dark about whether the regulations would be disallowed. |
| In a press conference after the vote, Palmer said: “I was negotiating as hard as I could for the people of Australia and I’m happy that the outcome’s a good one. We’ve taken the government from a position where they were quite different to what I’ve just announced today, to being quite positive,” he said. | In a press conference after the vote, Palmer said: “I was negotiating as hard as I could for the people of Australia and I’m happy that the outcome’s a good one. We’ve taken the government from a position where they were quite different to what I’ve just announced today, to being quite positive,” he said. |
| Palmer said he had not met any representatives of the financial advice industry to discuss the changes he was considering. Asked why, he said: “Because I thought it out. | Palmer said he had not met any representatives of the financial advice industry to discuss the changes he was considering. Asked why, he said: “Because I thought it out. |
| “What happens in parliament house is you get a series of people coming around saying you should do that or you should do this. | “What happens in parliament house is you get a series of people coming around saying you should do that or you should do this. |
| “I drew on my own experience and my own experience in industry, and looked at a couple of other areas of things that I thought were important.” | “I drew on my own experience and my own experience in industry, and looked at a couple of other areas of things that I thought were important.” |
| He said the PUP senators Dio Wang and Glenn Lazarus, and the Motoring Enthusiast party senator Ricky Muir all had contributions on the proposals. | He said the PUP senators Dio Wang and Glenn Lazarus, and the Motoring Enthusiast party senator Ricky Muir all had contributions on the proposals. |
| But industry groups say the changes outlined in Cormann’s letter to Palmer will do little to provide additional protection to consumers. | But industry groups say the changes outlined in Cormann’s letter to Palmer will do little to provide additional protection to consumers. |
| The chief executive of Industry Super Australia, David Whiteley, said he recognised the PUP's attempts to improve consumer protections, but on face value the proposals in the letter did not did so. | |
| “We believe that what consumers previously had was an iron-clad best interest test, an iron-clad guarantee there would be no conflicted remuneration when they receive that advice ... and an iron-clad guarantee they would only pay for advice when they receive it,” he said. | “We believe that what consumers previously had was an iron-clad best interest test, an iron-clad guarantee there would be no conflicted remuneration when they receive that advice ... and an iron-clad guarantee they would only pay for advice when they receive it,” he said. |
| The chief executive of the Council on the Ageing Australia, Ian Yates, said: “We’re very disappointed that the PUP is leaving consumers vulnerable. These changes certainly don’t make up for the protections the government is taking away. We’re not sure if they’re workable, the best-interests provisions would have to be tested in court.” | The chief executive of the Council on the Ageing Australia, Ian Yates, said: “We’re very disappointed that the PUP is leaving consumers vulnerable. These changes certainly don’t make up for the protections the government is taking away. We’re not sure if they’re workable, the best-interests provisions would have to be tested in court.” |
| Choice’s chief executive officer, Alan Kirkland, said: “These changes do little to change what is already in the legislation. Industry will be thrilled, the balance is still tipped away from consumer protections.” | Choice’s chief executive officer, Alan Kirkland, said: “These changes do little to change what is already in the legislation. Industry will be thrilled, the balance is still tipped away from consumer protections.” |
| The chief executive of National Seniors, Michael O'Neill, said it could be suggested Palmer had treated older Australians “with contempt”. | The chief executive of National Seniors, Michael O'Neill, said it could be suggested Palmer had treated older Australians “with contempt”. |
| “Today’s action has wound back consumer protection in Australia considerably. It’s older Australians, it's retirees, it's pre-retirees, those folk who are trying hard to provide for their own retirement ... who will need to now battle the challenges of reduced consumer protection.” | “Today’s action has wound back consumer protection in Australia considerably. It’s older Australians, it's retirees, it's pre-retirees, those folk who are trying hard to provide for their own retirement ... who will need to now battle the challenges of reduced consumer protection.” |
| Palmer said the groups “didn’t know what they were talking about” because they had yet to see the letter to Cormann and the new regulations to be introduced. | Palmer said the groups “didn’t know what they were talking about” because they had yet to see the letter to Cormann and the new regulations to be introduced. |
| Labor's Treasury spokesman, Chris Bowen, said it was another example of "chaos", "desperate policy on the run" and last-minute deal-making, contrary to Tony Abbott's promises to run an orderly, methodical, adult government. | Labor's Treasury spokesman, Chris Bowen, said it was another example of "chaos", "desperate policy on the run" and last-minute deal-making, contrary to Tony Abbott's promises to run an orderly, methodical, adult government. |
| Bowen said the government was so desperate to secure its retrograde changes that it was prepared to agree to new red tape. | Bowen said the government was so desperate to secure its retrograde changes that it was prepared to agree to new red tape. |
| He was unsatisfied by the assurance that the government would move to include in the statement of advice a requirement to act in the best interest of clients consistent with the Corporations Act, saying the Coalition had already taken out the "catch all" best-interest provision introduced by Labor. | He was unsatisfied by the assurance that the government would move to include in the statement of advice a requirement to act in the best interest of clients consistent with the Corporations Act, saying the Coalition had already taken out the "catch all" best-interest provision introduced by Labor. |
| "The best-interest test has been weakened beyond recognition," Bowen said. | "The best-interest test has been weakened beyond recognition," Bowen said. |
| Greens senator Peter Whish-Wilson said the letter showed Palmer had been played like a fiddle. | Greens senator Peter Whish-Wilson said the letter showed Palmer had been played like a fiddle. |
| “There is nothing in here at all that adds to the debate. If anything it sets us back,” he said. | “There is nothing in here at all that adds to the debate. If anything it sets us back,” he said. |
| “These Fofa laws were about changing the culture in the financial services industry … we’ll now go back to the drawing board and look at ways that we can continue to keep this fight out there because it’s very clear we haven’t got the right balance.” | “These Fofa laws were about changing the culture in the financial services industry … we’ll now go back to the drawing board and look at ways that we can continue to keep this fight out there because it’s very clear we haven’t got the right balance.” |
| Labor and the Greens voted in favour of the disallowance motion, as did independent senator Nick Xenophon. | Labor and the Greens voted in favour of the disallowance motion, as did independent senator Nick Xenophon. |
| The PUP senators Wang, Jacqui Lambie and Lazarus voted against, with Muir, the Liberal Democrat senator David Leyonhjelm and Family First senator Bob Day. | The PUP senators Wang, Jacqui Lambie and Lazarus voted against, with Muir, the Liberal Democrat senator David Leyonhjelm and Family First senator Bob Day. |
| Labor senator Sam Dastyari, who brought the motion to strike down the regulation, said in the Senate: “These changes are allowing unscrupulous advisers and banks pushing their own products … to now bypass the best-interest duty and to make their income by putting their own financial gains above the interests of consumers.” | Labor senator Sam Dastyari, who brought the motion to strike down the regulation, said in the Senate: “These changes are allowing unscrupulous advisers and banks pushing their own products … to now bypass the best-interest duty and to make their income by putting their own financial gains above the interests of consumers.” |
| Both houses of parliament debated the financial advice laws in question time. Asked about the reforms, the treasurer, Joe Hockey, said: “Our reforms are sensible. Our reforms put in place rules to ensure there is consistency and predictability for financial advice.” | Both houses of parliament debated the financial advice laws in question time. Asked about the reforms, the treasurer, Joe Hockey, said: “Our reforms are sensible. Our reforms put in place rules to ensure there is consistency and predictability for financial advice.” |