The Government's proposed registry of financial advisers will provide transparency without the costs associated with regulation the Minister for Finance and acting Deputy Treasurer, Senator Mathias Cormann believes.
Responding to an allegation by Labor Senator Sam Dastyari, that the Government's Future of Financial Advice reforms were paving the way for the return of "secret sales bonues", Senator Cormann said the regulations would provide a more transparent system going forward.
"We are not bringing back secret sales bonuses, so I reject that entirely," he said.
"All of us agree that we need to keep lifting professional, ethical and educational standards across the financial advice industry — of course.
"The question right now that is before us is on how best to keep going down that path.
"From my point of view I think we need to do it in a way that delivers genuine improvements in the most efficient way possible so that we do not keep pushing up the cost of advice for people across Australia that are saving for their retirement, because the costs of whatever regulation we put in place comes out of people's retirement savings, ultimately.
"Right now, as a result of our agreement with the Palmer United Party and Senator Muir from the Australian Motoring Enthusiast Party and supported by Family First and the Liberal Democrats, we are progressing an enhanced public register of financial advisers which will provide transparent information about financial advisers' credentials, education and status in the industry."
