Senate debates

Thursday, 20 March 2014

Questions without Notice

Financial Services

2:23 pm

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Again, Senator Whish-Wilson is mixing up a whole series of different concepts here. Let me make the general point up front that the most stringent regulation is not going to eliminate criminal or fraudulent activity across Australia. You cannot regulate for a perfect world. If you are going to try to regulate for a perfect world, nobody is going to do anything. The second point I would make is that, for example, the so-called opt-in requirement legislated by Labor, forcing people to re-sign contracts on a regular basis with their financial advisers, would have done nothing to prevent the Storm Financial collapse. Storm Financial clients were actively engaged with their financial services provider but they were getting bad, inappropriate advice. The costly imposition of additional red tape on business and additional red tape on consumers, leading to increased concentration in the financial services market, would not actually improve the situation. Change is only good when it makes things better. (Time expired)


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