Advisers would overwhelmingly prefer a new Coalition Government to manage Australia’s financial services sector, according to our latest poll.
In an emphatic vote of no-confidence in the Labor Government, 89% of the hundreds of advisers who have taken part in our poll have sided with a new Coalition Government in answer to our question:
Following the August 21 Federal Election, which Government will deliver a better financial services industry for advisers and consumers?
5% of advisers believe it will make no difference to the financial services industry regardless of which party takes power after August 21, while only 3% believe a returned Labor Government will be the best outcome for the financial services industry, its advisers and their clients.
Based on comments submitted by advisers, there appears to be a general sense that it is not so much a Coalition Government that is preferred, but rather a Labor Government that is not.
Many advisers have strong objections to what they see as the close ties between the Labor Government and union-backed industry funds, believing this group exercises too much influence over the Government:
A return of the Labour Government will further entrench the Union power and takeover of the Australian Super Industry
The indusrty Funds and unions don’t like competition. Return Gillard and the consumer will be the loser…
Others believe that proposed industry reforms being considered by the Government will lead to unintended consequences:
The people in this government … do not have the capacity to understand the unintended consequences of their reforms and instead of genuine consultation with industry try to dictate to industry. They do not respect that it is industry and business who understand the issues better than any government or review…
One of the sad characteristics of modern Government is that they are so confined by their idealologies that they are incapable of thinking through a policy position to avoid un-intended consequences.
Another observation places into perspective the nature of much of the debate currently surrounding proposed industry reforms:
It is sad that throughout the “debate” that the emphasis has been on “how we are paid” rather than “what we do”
This last comment also serves to highlight a further consensus amongst advisers, namely that Government decision makers and senior public servants still do not properly understand the role of the financial adviser and the value they provide to their clients.
With less than two weeks to go to Election day, now is an important time to have your voice heard. If you haven’t done so already, cast your vote in our poll and add your comments…
Many advisers may wish for a coalition govt (ie retention of commissions)…but many clients would be looking for a more transparent and conflict free financial services sector… as would many advisers…the debate how we are paid is important – as how we are paid influences conflicts of interest and hence outcomes for our clients…what we do is also important…if we are paid by the client we do what we do for the client and not on behalf of a 3rd party.
Happy Election Season.
I would prefer a coalition government to be in charge of the country as they have proven themselves to be better business managers for our economy. Reform of the financial services sector is underway and no matter who wins there will be changes, I beleive that the coalition has the right mix in that it is not how we get paid rather what good we are able to do for people who use the services of a financial adviser who is focused on his/her clients interest and the overall benefit that brings to the Australian community as a whole.
I’d like to think the coalition will win on 21 August and all our current fears will disappear but that may not happen and we all need to steel ourselves to battle a re-elected Labor Government! I hope I’m very wrong in relation to the outcome on 21 August!
I see no need to get into politics…It is good to see that the Coalition advising is doing its job…I was taught to not believe everything I saw on TV however…nor to believe what pollies tell us during an election…most reform had historically been implemented by Labor…be it social or economic…remember that Labor implemented broad based superannuation for all…which is paying many an advisers income.
Again Happy Election.
A change of government will send us backwards in our attempt for true reform in this industry. The perception of the old lifey/back door commission won’t go away under a Coalition government. Joe Hockey has already said that he won’t oppose commissions.
The Coalitian had the chance of serious reform but failed in their 12 years. Don’t tell me FSR with 4 subjects of a mickey mouse diploma, that you can now do in a week, was strong reform. Only a Labor government has the track record of reform. Remember it was Keating who introduced compulsory superannuation that transfromed this industry from an insurance industry to one where advisers help many Australians prepare for their retirement. Think about the damage the Coalitian will bring with no increase in SG. The debate shouldn’t be about the super providers (who give most of the voice to government) but about advice for an agreed fee where advisers provide good value for their services. The Coalitian don’t have a policy on this and this is one of the reason we need these reforms! Their lack of reform was one of the reason this industry lost it’s respect. We are slowly building that back and to lose momentum would be disastorous. Come on guys, time to grow up as a profession.
The bias in this industry towards the Liberal Party never ceases to amaze me! Our industry is awash with money and everyone gets paid very well, from the Fundies to the Adviser, simply because of ALP policies.
Where would the $trillion of FUM be without the SGC? Our industry is largely built off the back of this policy alone!
What about the proposal to increase the SGC to 12%? More billions coming into the system.
What about the ALP policy re Dividend Imputation that made share investing, rather than property, much more attractive?
Lets face it, the ALP is the greatest friend this industry has ever had and no one wants to acknowledge it!
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