Speaking exclusively to InvestorDaily following a speech delivered at a Liberal Party luncheon in Sydney on Friday, Assistant Treasurer Arthur Sinodinos said he was aware of some critical comments made about the industry-funded dispute resolution scheme by financial services industry stakeholders.
The Assistant Treasurer listed the operations of FOS as one of a number of policy issues affecting the financial services industry that the government is open to reviewing as part of an informal “work program” in consultation with a range of relevant stakeholders.
“We’re not looking to make radical change but we are willing at this stage to at least establish ‘what is the case against some of the operations of [FOS]’ and ‘what are the best ways to remedy any proven problems’,” Mr Sinodinos said.
The “cost and availability of professional indemnity insurance” and “educational standards” for financial advisers were also mentioned among the “slew” of financial advice sector policy issues identified by Mr Sinodinos.
These issues, he said, will be addressed by the government through targeted consultation with industry stakeholders, rather than via a “fully flown, very formal” process.
The comments came in response to a question raised by Grant Scalmer, managing director of non-institutional dealer group Risk & Investment Advisors Australia (RIAA), who told the audience at the Liberal Party event that FOS is having a “detrimental” effect on the “independent sector” and that it should form part of the Financial Systems Review.
“There is no right of appeal and the licensees are left as the ultimate person responsible,” Mr Scalmer said.
Mr Sinodinos said he had received “representations on that matter” from across the country and that the government is following up on those complaints in a “discrete” way.
