Financial advice laws introduced under Labor to protect investors will be wound back, the government has confirmed.
Acting Assistant Treasurer Mathias Cormann has been quoted in various media reports today confirming the regulatory changes, after they were largely recommended by a Senate inquiry released his week.
This includes axing a clause which forces financial advisers to take “any reasonable steps” in the best interest of their clients, as the government feels there are already adequate protections available under the Corporations Act, and it wants to reduce red tape.
Cormann has also confirmed a ban on commissions for financial advisers giving personal advice to clients will remain in place.
“That [the Corporations Act] is adequate in order to ensure that financial advisers act in the best interests of their client,” he told the ABC.
“We have always said it was not our intention to bring back conflicted remuneration,” he said.
The move is expected to trigger some criticism from industry superannuation funds, according to this report by the Australian Financial Review, as well as some consumer groups.
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