The Assistant Treasurer has acted inconsistently in exposing independent advisers to widespread changes through the Life Insurance Framework while not addressing the problems caused by institutions according to the director of a financial advice group.
Now Financial Group, director and adviser, Mark Dunsford has claimed the Assistant Treasurer, Kelly O’Dwyer, has used selective information and misrepresented advisers in comments made concerning their education and professional standards.
Dunsford pointed to a radio interview on 2UE in Sydney in December last year in which O’Dwyer agreed that advisers did not need any qualifications to provide advice before stating that “…most people in the sector are hardworking, very competent people but there are some people out there who don’t have adequate training and who aren’t giving proper advice”.
According to Dunsford this showed a lack of understanding of the advice sector as well as a double standard given that most of the recent problems in the advice sector have not been caused by individual advisers who were already educated to current standards but by financial services institutions.
“As Assistant Treasurer, Ms O’Dwyer would need to protect the big institutions. She couldn’t have the public lose faith in them,” Dunsford said.
“Yet, most of the broad scale failures in financial services have been perpetrated through vertically-aligned businesses, not small businesses.”
“These would be the same institutions that ASIC’s Deputy Chair, Peter Kell, has called out for having poor values and a ‘sales culture’ focusing on a ‘share of wallet’ rather than the wellbeing of the customer.”
Dunsford claimed that O’Dwyer should be working to protect small businesses that provide advice to consumers and value to the Australian economy instead of siding with institutions which have struggled with compliance around advice.
“There has been a cherry picking of worst case scenarios to promote an agenda and these comments are out of line and have treated the industry with disrespect.”
“Ms O’Dwyer, despite her rhetoric, has yet to demonstrate she supports small business, and her lack of understanding is appalling,” Dunsford said.
Absolutely correct! She has been led by the nose by the institutions and their lobbyists who are the root of the problem. Small Business minister, you have no understanding of the industry, time to learn or step aside!
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