Speaking at a Liberal Party luncheon in Sydney on Friday, Mr Sinodinos said the Murray Inquiry had broad terms of reference and would “fashion the future of our financial services industry in a positive and co-operative environment”.
“Above all, [the inquiry] will be an agent for growth ― not a vehicle for more regulation,” he said.
The Murray Inquiry is a “high priority” for the Coalition government and is “well underway”, added Mr Sinodinos.
The assistant treasurer also defended his move to unwind the “regulatory overreach” of the Future of Financial Advice (FOFA) reforms, as promised by the Coalition in opposition.
Mr Sinodinos unveiled a package of amendments to FOFA before Christmas, and a consultation paper related to the announced changes was released last week.
“Where legally possible, the Government will implement the measures through regulations and make subsequent amendments through primary legislation, at which stage any interim regulations will be repealed,” he said.
When it came to specific elements of the FOFA amendments, Mr Sinodinos singled out the 'best interests' duty, which he acknowledged “was intended to increase trust and confidence in the financial advice sector”.
But the duty as it currently exists “has created uncertainty, without realising all the initial policy intentions”, he said.
“In particular, the catch-all and scaled advice provisions have resulted in significant legal uncertainty within the industry. Many have argued that the catch-all provision makes the safe harbour unworkable and removing this provision will restore confidence to industry,” said Mr Sinodinos.
“The best interests duty will continue to provide a high degree of protection against poor quality advice, as advisers will be required to satisfy six provisions to prove that they have acted in their client’s best interest,” he said.
The government is also committed to removing the opt-in requirement for financial advice firms, said Mr Sinodinos.
“This requirement has created practical difficulties while doing little to increase consumer protection. The cost savings realised by industry as a result of the removal of opt-in should be passed on to consumers,” he said.
Along with the FOFA amendments, the senator also reiterated the government's pledge to make “no unexpected detrimental changes” to superannuation.
