Peter Johnston from the AIOFP says: Professional judgement should apply to all

It is time for the Financial Advice industry to be treated in the same manner as the Legal and Accounting professions where minimal interference from Canberra bureaucrats or Politicians is tolerated or desired.

Internal issues are normally quietly resolved or where necessary the Courts get involved to decide the outcome without a politician or bureaucrat in sight.

With the CSLR now activated and the consumer-friendly AFCA effectively overseeing the Advice industry from an advice quality perspective, ASIC can then turn their attention onto the product manufacturer/institutional space where most of the problems over the past 40 years have occurred for consumers.

You only need to look at the AFCA Annual Report where over 95% of consumer complaints are against the Institutions and they are 100% responsible for the $40 billion of failed funds over the past 30 years.

Institutions are continually avoiding accountability over their conduct by spinning the blame onto the Financial Advice community and making large donations to political parties to mitigate negative outcomes.

Like most times when Canberra gets involved with policy outcomes, it is a poorly managed process and the taxpayer is left with the cost.

The calibre of Politician has markedly diminished over the past 20 years since the Parliamentary Pension fund was abolished [October 9th, 2004] and all political parties have had difficulty recruiting the best minds into seats.

This is a critical issue facing Australia’s democracy going forward.

Around 10% of Politicians are currently in the old pension scheme, the rest are on the dole if unseated. Morrison was a classic example of no pension and a Sydney lifestyle to maintain, he could not give up his seat until an offshore job emerged.

Financial Advisers should be permitted to use their professional judgment when dealing with clients and Canberra Bureaucrats should be held to account for their professional judgment when dealing with our industry.

With the slide in popularity of the Albanese Government in recent times the chances of a 2024 Election now seems very unlikely.


Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621 | Download my business card

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