The Ripoll inquiry was an opportunity to divulge the underlying issues associated with the collapses of a number of financial services companies.
Ripoll says he expected to receive a number of submissions from investors and the financial planning industry, but did not anticipate people approaching him in supermarkets, at social gatherings or in the street armed with documents for him to read.
“I got bombarded with information, but in a good way,” he says.
“I didn’t declare to know it all, which was why I was keen to hear from different parties and learn as quickly as possible. I wanted to make sense of what wasn’t working and make the appropriate recommendations to improve the industry, not just in the short term but in the long term.”
He says the number of horror stories he heard about how ordinary Australians had been taken for a ride was why he grabbed the opportunity to lead the inquiry with both hands.
“It is hard to be in politics and not have an interest in economics and finance, and consumer protection. Seeing the physical and emotional damage that company collapses and inappropriate advice causes really makes you sit up and take notice,” he says.
“Storm Financial affected so many ordinary mum and dad investors, while 60,000 felt the pinch of Great Southern and Timbercorp’s demise.
“You hear about the widowed pensioner who lost her life savings and average families who lost their homes in the aftermath of these collapses and it’s clear that something must be done.”
He says while the collapses of high-profile and large businesses have certainly accounted for the industry’s low points, working on an inquiry that covered so much ground and which has the potential to improve so much was a career highlight.
“The stories I heard were shattering, but I appreciated the ability to work with key industry heads and their willingness to recognise the issues and embrace change,” he says.
“The committee received 400 submissions, which was a phenomenal response, and now everyone is just waiting to see how the government will translate recommendations into policy.”
It is the right time in the evolution of financial services in Australia to set out a decent direction for where the sector is headed, he says.
“Hopefully once the issues are addressed there will be less fear and ignorance surrounding the industry, greater education standards and more in-depth client/adviser relationships,” he says.
“Australia has a lot of skilled people and the fourth largest pool of funds under management in the world. I believe if we can get the policy settings right and the industry embraces reform, Australia has the potential to export its expertise and be a real player in financial services globally.”
