The financial advice community has welcomed Bill Shorten’s retention of his financial services and superannuation brief as Prime Minister Julia Gillard elevated him to the cabinet-level employment and workplace relations portfolio.
Shorten’s expanded role was part of a broader reshuffle, which Gillard unveiled yesterday afternoon.
Media speculation was rife about Shorten’s elevation to a cabinet-level post and Gillard’s announcement that he would remain Financial Services and Superannuation Minister was a relief.
The reshuffle occurs at a critical time for the government’s planned Future of Financial Advice (FOFA) reforms, which have already been delayed by at least three months after the measures were referred back to the Parliamentary Joint Committee on Corporations and Financial Services and the Senate Economics Committee.
“The FPA appreciates the continuity that this appointment provides for the industry and to us,” FPA policy and government relations general manager Dante De Gori said.
“We don’t have to begin again in respect to the issues. From our perspective, that allows us to continue with our priorities and our issues with respect to FOFA.”
The Association of Financial Advisers (AFA) agreed the continuity provided by keeping Shorten in the role was welcome.
“Obviously, we’re now at the business end of the FOFA debate, and having a minister who has a good understanding of all the nuances of the portfolio is encouraging,” AFA chief executive Richard Klipin said.
The AFA and the Association of Superannuation Funds of Australia (ASFA) also welcomed the potential for cabinet-level access to industry issues afforded by Shorten’s appointment as Employment and Workplace Relations Minister.
“We are pleased to see Minister Shorten stay on deck to oversee the implementation of the Stronger Super reforms and help drive through the increase in the superannuation guarantee from 9 to 12 per cent,” ASFA chief executive Pauline Vamos said.
All three industry bodies have said they want FOFA’s 1 July 2012 implementation date to be postponed, in line with the series of delays that have beset the reforms’ progress through Parliament.
“Given that the FOFA process, in many ways, has been delayed through the legislative process, the implementation process should absolutely follow that and allow sufficient time,” Klipin said.
De Gori said: “It doesn’t change the industry’s position in terms of pushing for some transitioning or extension to help the industry comply with the changes from 1 July.”
