NEW LAWS TO PROTECT CONSUMERS IN PLACE BUT NOW THE GOVERNMENT MUST FOCUS ON IMPLEMENTATION

Labor welcomes important new laws to protect consumers by improving the educational, professional and ethical standards of financial advisers and by reducing commissions for life insurance products which passed the Senate today.

Labor strongly supports laws which boost consumer protections within the financial services industry and ensure that people receive professional and ethical advice from their financial advisers.

“With these laws now in place, the onus is on the Turnbull Government to ensure the smooth implementation of the reforms. With a reasonable transition timeframe in place there is simply no excuse for any delays or failures by this Government,” Senator Gallagher said.

The reforms include a new statutory oversight body that will design the new training standards to be in place by mid-2017.

“Critical to the success of the new laws will be the work undertaken by the new oversight body and the leadership provided by the inaugural appointments to that body,” Senator Gallagher said.

Important changes to better protect consumers by reducing commissions for advisers for selling life insurance products also passed the Senate today.

“After years of scandals, rip-offs, unethical and in some cases illegal conduct its essential that laws are put in place that put the interests of consumers front and centre.

“It’s for that reason that Labor has supported these laws but we know that more needs to be done to protect consumers from the rip-off’s and scandals that the financial services industry has become known for in recent years.

“Labor will continue to fight for a royal commission because we know it is the only way to shine a light on the misconduct and cultural issues in the banks that have led to thousands of Australians being ripped off or treated unfairly by them.

“The success or otherwise of these new laws rests entirely with the Government and Labor will be monitoring this closely,” Senator Gallagher concluded.

THURSDAY, 09 FEBRUARY 2017

Senator Katy Gallagher is Labor's Shadow Minister for Small Business and Financial Services.

This is a joint release with Senator Chris Ketter, Chair of the Senate Economics References Committee.