The Coalition will take a more hands-off approach to the financial services industry if it wins the upcoming election, shadow treasurer Joe Hockey told an Association of Financial Advisers (AFA) event held in Sydney yesterday.
"We would not have more regulation, but less. The industry creating regulation means that you're masters of your own destiny and guidance is not coming through the air conditioning in Canberra," Hockey said.
He said if the Coalition was to win the next election, he would also introduce a review into the Financial Services Reform legislation.
"I want to remove the red tape ... and go back to the core principles of flexibility ... and the broad definition of financial products and services," he said.
Hockey told the audience of financial advisers the Coalition would not become involved in a stoush with not-for-profit industry funds.
"You guys have to defend yourselves. Put your hands in your pockets against industry funds and explain why investing in for-profits is better than industry funds," he said.
Hockey also commented on the progress of the various reviews.
Speaking about the Ripoll inquiry recommendations, Hockey said it was attractive for financial advisers to have a fiduciary obligation to clients and there should be a focus on payment for service.
"Service needs to have a value that is transparent to clients. However, I have never had a problem with commissions as long as they are properly disclosed, as some people cannot afford to pay upfront fees for financial advice," he said.
Hockey said while discussions about the Cooper review were speculative at this stage, he did have some concerns about the potential for government intervention.
"I am always nervous about government prescribing new financial products. Instinctively I say that this isn't the role of the government, but of the industry," he said.
This echoes comments made by the shadow minister for superannuation Luke Hartsuyker earlier in the week.
"The Coalition thinks we should be encouraging innovative investment strategies from trustees, rather than limiting you to standard investment choices offering standard returns to disengaged members," Hartsuyker said.
