In a late afternoon announcement on 7 September, the federal government stalemate was broken, with Labor handed control of the country’s minority government.
For many Australians, the clarity of a minority government does not resonate too loudly, though for those in the industry it points to one certainty – change is definitely unavoidable.
Little has been said since the call of the election on 21 August about Labor’s stance on its Future of Financial Advice (FOFA) reforms if it was to take government.
The coalition under Tony Abbott was similarly quiet on its plans.
Now it appears a similar situation will befall the industry, with neither party handed a mandate to govern.
Under the Labor government commission payments and volume rebates were to be abolished, with the opt-in rules the unwanted splinter in an adviser’s side.
Under the Liberal government, commissions would be put under the microscope, with no blanket ban imposed.
There is nothing new here. Though, with a new-look government, surely there will be new-look rules?
There has been much speculation that once Julia Gillard takes minority control, she will unveil a new cabinet with Financial Services, Superannuation and Corporate Law Minister Chris Bowen handed a new portfolio.
As Bowen was at the centre of the FOFA reforms, if he was to lose his portfolio would this also mean a change in reform? Would the industry be asked for further consultation? Would a Gillard government pick up on the coalition idea of forming working groups rather than undertaking reviews?
It is difficult to predict or share what a coalition government could have offered the industry. Apart from suggesting it would clean up Labor’s mess, the opposition did not release any detailed superannuation package or fully-fledged ideas on industry reform. Self-regulation was slated, though nothing concrete was mentioned.
Another element that has yet to be spoken about is the Greens’ take on our industry. In the past, our country has been ruled on a two-party preferred basis. That theory is now out the window.
In July, former New South Wales Liberal leader Kerry Chikarovski made mention that financial advisers wishing to lobby their members of parliament over industry concerns should consider approaching the Greens. Did she know something back then?
What will the Greens bring to this adventure?
Where do we go from here?
