The CEO of the AIOFP, Peter Johnston, reports

We totally concur with the FAAA views on yet another ‘stitch – up’ of the Advice community and indirectly consumers by the Politicians and Bureaucrats in Canberra.

You may recall we have been warning of this outcome ever since the Hayne Royal Commission Recommendations were handed down on February 1st 2019. Who can ever forget the attached picture of Commissioner Hayne refusing to shake Treasurer Frydenberg’s hand as the Final documents were handed across.

It seems Frydenerg may have had something to do with ‘adjusting’ the outcome…….?

Also attached is the ‘GOVERNMENT RESPONSE TO HAYNE RC’ document where Frydenberg committed to implementing ALL 76 Recommendations and on page 36 committing to the CSLR commencing on 1/1/2008 and capturing all MIS failures leading into the MAY 2019 Federal Election.

This is where and when the FBAA had that famous victory.

We think Comm Hayne had the TRIO SUPERANNUATION FRAUD [2009] victims in mind and the STERLING FIRST retirement home fiasco victims [May 2019] would also have been compensated if both sides of politics had honoured their promises to implement the original RC Recommendations.

Both sides had agreed to honouring Hayne’s original recommendations leading into Elections then both reversed them them once in power.

WHY? Considering the Institutions were facing compensation from 1/1/2008 of over $40 billion of failed funds they did not want a retrospective start date and no doubt reminded both sides of politics of their multi – million donations.

What the Advice community should learn from this pathetic outcome is –

  • Politicians will not honour their commitments on occasions [being kind here].
  • Politicians continue to treat the Advice community with contempt.
  • Advisers are still being held unfairly responsible for Product Failure whilst the Institutions and Regulators run for cover and avoid accountability.
  • We need to get our Clients engaged with decisions that directly affect them to intimidate Politicians before the next election.
  • The power of political donations.

It is very clear we need to implement the last two bullet points ASAP, watch this space.


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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