Greens call on Government to ditch FoFA wind back in wake of ASIC Inquiry findings

Greens spokesperson for Competition Policy, Consumer Affairs and Small Business calls upon the Government to abandon their Future of Financial Advice(FoFA) law wind-back, in the face of damning criticism of the large financial services companies and the regulator from the ASIC Inquiry report.

Senator Whish-Wilson says, “The ASIC Inquiry showed that sections of the financial services industry, especially the large banks, need to dramatically improve their standards and culture, and that we have a regulator without teeth or resources.

“The Government must immediately signal that they are going to drop their FoFA wind-back. The industry needs more regulation and policing, not less.

“If the Government had any interest in consumer protection and good corporate behaviour they would give up on their FoFA reforms, properly fund ASIC and move to raise penalties for white-collar crime.

“It became clear in the FoFA Senate Inquiry that the Government gave an under-the-table promise to the top end of town that they would deliver on the FoFA wind-back before July 1 this year.

“If Mathias Cormann winds back FoFA protections this weekend by regulation, it would be one of the most cynical examples of governing against the public interest in recent history,” Senator Whish-Wilson concluded.