Federal Member for Cunningham Sharon Bird and Federal Member for Throsby Stephen Jones are deeply concerned that the Abbott Government has today moved to roll-back consumer protection laws, the Future of Financial Advice (FOFA) reforms.
“The Prime Minister’s ‘Red Tape Repeal Day’ today is a big leap backwards” said Jones.
“Axing the FOFA reforms will remove the guardrail for investors, not the red tape.”
“In Government, Labor banned kick-backs for financial advisers and imposed a new duty for advisors to put their client’s interests first.”
“If these laws had been in place before Labor came to office then the worst examples of investor losses in Trio Capital and Storm – many of whom were constituents of ours – may never have occurred.”
“Before the election the Abbott Government promised they would do something to assist the victims of Trio – they haven’t”, said Ms Bird.
“Rolling back the consumer protection laws only makes matters worse.”
“It will be easier for unscrupulous selling of junk investments to innocent consumers.”
“Thousands of local investors will now be left with less protection as a result of the repeal of these reforms.”
“How is it in the public interest to remove the requirement that financial advisors act in their client’s best interest?” said Jones.
“It just begs the question – who’s interests are the Abbott Government serving?”
19 March 2014