Discussing the FOFA reforms in parliament this week, Mr Bowen said Mr Abbott “should face the victims of Trio [Capital], the victims of Westpoint and the victims of Storm and tell them that this is regulatory overreach – tell them that these reforms go too far”.
“They [the victims] know more than anybody why these reforms were introduced and why this government is wrong,” he said.
Mr Bowen accused the government of wanting to bring back laws that would enable similar collapses to occur.
“The commissions being paid for the advice to invest in Westpoint amounted, on average, to 10 per cent of the amount invested,” he said.
“This government thinks that is just fine.”
In response, parliamentary secretary to the minister for finance Michael McCormack said the FOFA reforms will make financial advice more accessible and more affordable.
“Let us be clear about exactly what the Coalition is doing and why things have been put on hold for now,” Mr McCormack said, adding that the Financial Services Council and Industry Super Australia have welcomed the delay.
“We are not proposing to water down important protections,” he said. “Reducing the compliance and regulatory burden for the financial advice sector, as for all sectors, has always been a top priority for the Coalition.”
