18 years after the introduction of compulsory superannuation, the Federal Government finally wants to abolish commissions payable to financial planners and force them by law to always act in the best interests of their clients.
What were they doing before? Not acting in the best interests of their clients? Were they just interested in dealing themselves the highest commissions? Such as the $6 BILLION paid in commisssions and kickbacks over the last four years alone? Why am I not surprised? And why did it take our lawmakers 18 years to work that one out?
Financial Services Minister Chris Bowen says that after a string of high-profile corporate collapses in which investors have been burned, such as Westpoint, Storm Financial and Opes Prime, the public has a right to be angry and that the Government has an obligation to act.
"Over the years thousands of Australians have had their life's savings wiped out through inappropriate financial advice," he said.
"Improved disclosure has been tried in the past, it doesn't work.
"We need to send a very clear message through our laws that Australians deserve first-class financial advice. Advice which isn't tainted by commissions or kickbacks, advice which is clearly in their best interests and nobody else's."
But the Opposition - true to its name - claims the reforms are heavy handed, arguing that commissions are appropriate if they are disclosed to clients.
The only thing they should be opposing is the delay in starting these proposed changes: 1 July 2012.
2012? Isn't that supposed to be the end of the world anyway? How convenient!
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