Financial services farewells Cormann

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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.

  • Andrew Dudman on 17/09/2013 10:23:45 AM

    I have followed Corman's public statements closely over the past 12 given the expectation he would set the future direction for our industry. Interestingly his statements appeared knowledgeable of our industry and the forces at play, and most importantly he was consistent. I wish him well in Finance and acknowledge his loss to Financial Services.

    Sinodinos is a political animal who will pick and choose battles for other than good policy reasons. Whether will will get the Labor relief we desperately need is now more questionable.

  • Martin Ball on 17/09/2013 4:37:13 PM

    Mr Sinodinos will need to prove himself as a positive influence on our industry to fix the wrongs implemented by Bill Shorten. Hopefully commonsense will prevail and we will see some fresh air reappear in our beaten and downtrodden industry. We are less efficient and less able to look after smaller more needy clients then ever thanks to Labour.

  • Mark Thompson on 23/09/2013 9:43:33 AM

    There goes our Industry's Champion.

  • Mervin C Reed FChFP on 23/09/2013 10:41:18 AM

    I am sure Arthur Sinodinos will not waste the opportunity that Mr Abbott has provided and not continue Mathias Corman's good work. The key to this will be wether he can get Mathias amendments up and running and fix the regulatory stuff. If he does not it will be quite apparent to all including the Prime Minister and the Minister for Finance and he will be replaced rather quickly.

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