Prime Minister-elect Tony Abbott has announced the Federal Government’s new ministry, moving financial services to be included as part of the Treasurer’s portfolio.
Senator Mathias Cormann, who has been the shadow Treasurer and shadow Minister for financial services and superannuation for the past three years, will take over the finance portfolio.
The financial services industry had expressed a wish to keep Cormann as financial services minister, but is supportive of the changes.
“We support the inclusion of financial services as part of the Treasurer’s portfolio and welcome new Assistant Treasurer, Senator Arthur Sinodinos and acknowledge the efforts of former shadow Minister Matthias Cormann in the financial services portfolio,” said Mark Rantall of the FPA.
FSC CEO John Brogden said, “With Joe Hockey, Arthur Sinodinos and Steven Ciobo we have a strong team in Treasury which will well represent the financial services industry in its next growth phase.”
The advice profession may have an added benefit with Ciobo, who will be the new Parliamentary Secretary to the Treasurer. Brogden says that he represents the next generation of Australian Coalition MPs and “has been a strong advocate for less regulation and red tape”.
“While we are disappointed to lose Mathias Cormann after his strong contribution to the financial services industry over the past three years, we understand he is talented and congratulate him on his appointment to Cabinet.”
Whoever is in charge, Wealth Professional readers have a few suggestions on what they would like to see happen. At the top of the list is less red tape, including the removal of opt-in and fee disclosure statements.
More regulation is being called for in some sectors – namely for industry super funds. Advisers want to see them provide simplified fee statements, pay adviser fees to advisers from the client account, and not to use investor money for things like advertising.
Advisers have also called for the new penalty system for Trustees to be passed and job creation prioritised.