The Assistant Treasurer Arthur Sinodinos on Sun 13.10.2013, spoke at the Association of Financial Advisers’ National Conference held in the Gold Coast. The speech was Mr Sinodinos’ first official address as Assistant Treasurer.
Mr Sinodinos discussed regulation of the financial sector noting that the Coalition’s financial system inquiry “will chart a course for the financial system over the next decade” and “will be an agent for growth – not a vehicle for more regulation”. Mr Sinodinos said the Government was “aware of the amount of regulatory change the sector has seen over recent years, and the significant adjustment and compliance costs of that regulation”. He said the Government wanted “to allow industry the time to bed down those reforms”. Mr Sinodinos also said this was the reason the Coalition was “imposing a moratorium on significant new financial sector regulation while the inquiry is underway”.
In relation to the Future of Financial Advice (FoFA) reforms, Mr Sinodinos said the “Coalition supported, and continues to support, the principles of FOFA”; however, he noted the Coalition has “concerns about regulatory overreach”. He reiterated the Coalition’s agenda to remove the opt-in requirements and to remove the confusion concerning differing insurance remunerations inside and outside superannuation.
Mr Sinodinos also noted that he understood the industry’s concerns in relation to the grandfathering arrangements for the ban on conflicted remuneration. He said the Coalition will work with the industry to ensure there are appropriate grandfathering arrangements in place. Mr Sinodinos said the Coalition will “shortly” release the process by which it would consult with stakeholders. He said the Coalition “will not be rushed on this consultation” but “will provide certainty to the industry as to where the Government stands, any changes that will be required to refine the current regime and in what timeframe this will be achieved”.
[LTN 198, 14/10/13]