Peter Johnston of the AIOFP, reports about the future ramifications of the CSLR manipulation.

Recently Lionel Rodrigues and I had one of the most disconcerting Zoom calls with Hamilton Locke partner and financial services specialist Simon Corrodus and Bernard Quinn KC about the future ramifications of the CSLR manipulation.

This piece of legislation has the potential to destroy the Advice Profession.

Last week Lionel and I were at the Conexus Canberra conference at Old Parliament House and after private conversations with some high-profile legal experts we were cautiously confident that the FSC manipulation of the CSLR legislation was unconstitutional, and it could be challenged in the High Court.

Unfortunately, we were all wrong. The old saying of ‘you can maim the public but don’t take the Governments money’ rings true. Anything where legislation involves the Government ‘taxing/levying’ citizens is fiercely protected under the Constitution regardless of imperfections.

We will receive a summary of the facts from Mr Quinn soon and will share it with you.

It is now painfully clear the only way to change the CSLR legislation is via Parliamentary intervention. You may recall Mr Quinn successfully prosecuted the flaws in the 99FA Legislation proving that the Ministers office and Treasury got it wrong, but this legislation is still in place.

Minister Jones’ solution to the emerging CSLR catastrophe for consumers and our Profession is to let the profoundly conflicted Treasury Bureaucrats assess their own ‘handiwork’ and give their views POST election – how stupid does the Minister think we are?

The only way to get the Legislation amended is a bipartisan agreement between the two major parties THIS SIDE of the election when the Bureaucrats influence is diluted and the left wing influences are focussed on winning the election. This is when Politicians will do just about anything to save their Seat and win or retain power.

The Profession needs ALL Advisers to educate their clients on what is emerging and encourage them to pester their local Federal member and opposition candidate.

While you ponder the above have a look at the attached AFR article yesterday about the collapse of the SHIELF product, just another product collapse that our Profession will have to pay for.

CSLR CEO David Berry gave a clear warning at the Conference that a ‘tsunami’ of compensation will hit us over the next 12 months and beyond.

This is the most serious issue I have seen over the past 40 years, it will make LIF/FASEA/Grandfathering ban look like a walk in the park.

If you are yet to educate and engage your clients with the seriousness of this issue, we hope this information unsettles you to do something about it.

More information shortly.