Outgoing Association of Financial Advisers (AFA) National President, Dr Jim Taggart, OAM, has called on new Financial Services Minister, Bill Shorten, to become a true advocate for the financial services industry, and take a “long hard look” at the real needs of consumers.
“We are calling on Mr Shorten to live up to his portfolio title and truly be the Minister for Financial Services, actively engaging, encouraging and supporting the industry so that it can properly advise consumers,” Dr Taggart said.
…introducing so-called reforms that ultimately force the price of advice up and make access to advice more difficult will only hurt consumers
“There have been a lot of armchair experts, a lot of lofty rhetoric and a lot of vested interests trying to hijack the agenda, but at the end of the day, introducing so-called reforms that ultimately force the price of advice up and make access to advice more difficult will only hurt consumers.”
Dr Taggart also raised concerns over what he terms the industry funds “anti-adviser” campaign. He said the industry funds campaign unfairly tarnished the reputation of advisers by inferring that advisers earning commissions are conflicted and therefore cannot operate in the best interests of their clients.
“The industry funds odious and expensive advertising campaign, with its fixation on commissions, is clouding the real issues surrounding Australia’s superannuation system and masking the real needs of consumers,” he said.
“In fact, what the AFA’s Back to Basics consumer research clearly illustrated was that consumers who use advisers highly value the financial advice they receive, regardless of how they pay for it, and are also better off and have greater peace of mind,” said Dr Taggart.
“The fact of the matter is that financial advisers have helped nurse ordinary Australians through one of the worst periods in economic history.”
Dr Taggart said he hoped Mr Shorten would recognise and acknowledge the valuable contribution financial advisers make to the overall financial well-being of millions of Australians.
