Labor Senator Lisa Singh confirmed the Abbott Government has failed in its bid to water down consumer protections for investors seeking financial advice.

Labor has fought the weakening of the Future of Financial Advice (FoFA) laws by the Abbott Government every step of the way.

Senator Singh said this is a monumental defeat for the Abbott Government and its determination to give the big banks a boost at the expense of consumers.

This week the Senate rejected the Government’s attempt to water down consumer protections introduced by Labor following the scandals involving Storm Financial, TimberCorp, Trio and Westpoint.

“The vote in the Senate is a victory for consumers and thousands of victims of dodgy financial advice. It’s a stinging rebuke of the Abbott Government which continues to try to sneak around the Senate to pass its unpopular policies,” Lisa Singh said.

“The disallowance is a major embarrassment for the acting Assistant Treasurer, Mathias Cormann.”

“It’s also a reminder that this agenda was started by the Assistant Treasurer, Arthur Sinodinos who remains sidelined pending NSW ICAC proceedings.”

The Government’s regulations remove essential consumer protections by watering down the Best Interests Duty, removing the Opt-In Requirement and allowing for the return of previously banned forms of conflicted remuneration.

“Tony Abbott has consistently ignored serious community concerns in Tasmania and across the country and remained determined to reduce these critical protections.”

Senator Singh is extremely concerned that despite tens of thousands of investors losing their money, the Abbott Government remains determined to weaken – rather than tighten – consumer protections.

“This should be a wake-up call for the Prime Minister – when will he finally get the message?” Senator Singh said.

Labor’s FoFA reforms ensured a strong, fair and efficient financial advice sector with strong safeguards in place.

After this failure in the Parliament, the Government must give up on its efforts to unwind these important reforms.

Labor will always stand for ensuring important consumer protections.
SENATOR LISA SINGH SHADOW PARLIAMENTARY SECRETARY FOR ENVIRONMENT, CLIMATE CHANGE AND WATER LABOR SENATOR FOR TASMANIA