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Government fails to take heed of financial victims woes on FoFA reforms

Media Release
Peter Whish-Wilson 18 Jun 2014

The Greens spokesperson for Small Business, Competition Policy and Consumer Affairs, Senator Peter Whish-Wilson today asked the government in Senate Question Time whether they had considered the plight of the hundreds of victims of the Timbercorp collapse when drafting their FoFA reforms.

ANZ and liquidators are today calling in the debts of mum and dad investors who were sold dodgy Managed Investment Scheme products from Timbercorp. These investments were risky and complex and were pushed by some financial planners seeking commissions.

Senator Whish-Wilson said, "Today in the Senate the Government failed to rule out bringing back laws that failed the mum and dad investors of Timbercorp.

"The Government also failed to show any responsibility towards these Timbercorp investors who feel like they are victims of white-collar crime.

"Acting Assistant Treasurer Matthias Cormann refused to rule out bringing in sneaky regulation to unwind consumer protections without scrutiny.

"The Government has refused to rule out bringing back the same loopholes that allow for conflicted remuneration and financial planning commissions that contributed to investors losing their life savings through the Timbercorp collapse.

"The Government needs to learn the lessons of the past and maintain the consumer protections that are currently in place," Senator Whish-Wilson concluded.

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