Bill Shorten has been forced to defend the Government's consultation process of its proposed Future of Financial Advice (FOFA) reforms after an industry participant publicly questioned the Government's depth and understanding of the industry.
Fiducian managing director Indy Singh used a question and answer session at yesterday's FPA luncheon to question the Minister for Financial Services and Superannuation as to whether the government had adopted a Bruce Lee style of fighting without fighting as part of its discussion with Australia's financial services industry.
"Is your style of consultation the art of consultation without consultation?" Singh said.
In response to Singh's question, Shorten said he did not accept the joke and did not feel it was respectful of the government's process.
"I'm sorry I haven't consulted you directly but I've spent a lot of time talking to a lot of planners and if the FPA want to bring you along to a meeting you're welcome to come," Shorten said.
"I didn't invent Westpoint, and I didn't invent Storm [Financial] and I didn't invent Trio [Capital] and I do talk to financial planners and I am standing in your corner for the promotion of your profession but if that therefore means the only way I can make a profession by agreeing with everything that everyone tells me then I'm going to disappoint you."
Shorten said he has a view about the importance of Australia's financial planning profession and does engage in discussions with the FPA on a regular basis.
"If you think it's sham consulting then I think you should ask the leadership of the FPA if they think its sham consulting," he said.
In response to this, FPA chair Matthew Rowe turned to Singh and said: "I don't believe it is sham consulting and your statement is out of line."
Shorten is expected to deliver the government's final decision on FOFA later this month.
