Another Palmer United backflip and leaving consumers at the mercy of the bank with watered down regulations.  Palmer has left Consumers at even greater risk from predatory lending behaviour by LENDERS.  Ah well..................  This email address is being protected from spambots. You need JavaScript enabled to view it.

FoFA laws to stay: Palmer

National Political News

Date July 15, 2014  Mark Kenny


Financial planners will be required to reveal their earnings from customers when Labor and the cross benches combine this week to vote down Tony Abbott's weakened financial planning laws, but the government will finally get its way on the carbon tax.  Mr Abbott has now secured the parliamentary majority needed to scrap the carbon tax with a repeal vote, backdated to July 1, due to be taken in the Senate on Tuesday................

But Mr Palmer has pulled the rug from the government on another incendiary issue - the Future of Financial Advice laws.  The PUP leader said his party was not negotiating with the government to reach a compromise on the laws and would simply not be approving the regulations as tabled.

A government attempt to circumvent an unco-operative Senate by watering down tough consumer protections for investors now appears doomed.  The issue has divided the financial and political communities with banks leaning on the government to weaken Labor's laws which were seen as too restrictive on banks.  Labor has argued its FoFA reforms were aimed at stopping the kind of fraud which ruined the retirement plans of thousands of ordinary Australian investors who sought the advice of the Commonwealth Bank's financial services arm and lost their life savings.  Finance Minister Mathias Cormann had hoped to have the changes, which among other things removed a specific requirement for planners to always act in the best interests of clients, accepted by the Senate this week.

Labor's scheme meant that as of July 1, bank tellers were prohibited from receiving commissions for recommending financial products.  The government's changes would have allowed commissions to continue, albeit in limited circumstances.  But Mr Palmer has now scuttled that hope, announcing on Monday that his party was not negotiating with the government and would instead vote with Labor and the Greens to keep the current FoFA laws in place.  Labor's Senator Sam Dastyari has given notice of a motion to formally disallow the changes, with a vote likely this week.

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