House debates Questions without Notice
Financial Services
Bernie Ripoll Oxley, Australian Labor Party, Shadow Minister Assisting the Leader for Small Business
2:55 pm
My question is to the Deputy Prime Minister. In light of the Commonwealth Bank financial planning scandal, why is the government opening the door for commissions to be paid on general and personal advice when this will make it impossible to guarantee that financial advice is being given in the best interests of Australian investors?
Warren Truss Wide Bay, National Party, Leader of the Nationals
This government wants the Australian people to have access to the highest quality financial advice available. We are determined to ensure that the regime that governs the industry is effective and will deliver the best possible service to the Australian people. The government is not watering down any consumer protection and it is not scrapping the best interest duty or reintroducing commissions. We have no plans to reintroduce commissions. This is a Labor Party scare campaign. Indeed, the government supported a ban on commissions and conflicted remuneration for financial advisers all along. At no point has the government sought to introduce commissions. The pretext behind the honourable member's question is completely false.
If you want to have an 'independent' commentary on this matter, ABC's FactCheckwhich is hardly noted for being friendly to this side of politics—described suggestions that we are bringing back commissions as 'scaremongering'. They also stated that the changes:
… do not bring back the type of commissions that financial advisers could receive before FOFA was introduced.
The reality is that the basis of the honourable member's question is wrong and he should stop trying to scaremonger.
Chris Bowen McMahon, Australian Labor Party, Shadow Treasurer
Madam Speaker, I rise on a point of order. Could I ask the Deputy Prime Minister to table the copious notes he was reading from?
Mrs Bronwyn Bishop Speaker
Was the honourable minister reading from notes and are they confidential?
Warren Truss Wide Bay, National Party, Leader of the Nationals
No, I referred to some notes.