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- published on 17/05/2012
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The professional obligations of financial planners trump those of their employers and should guide their behaviour in dealing with practices or processes that ... [more]
Bernie Ripoll reveals his greatest fear
- 2 February, 2012
- 5 comments
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"I think we can work through all of the issues and have the sector really move on with some certainty," said Ripoll.
George Orwell’s novel Nineteen Eighty-Four introduced us to Room 101, a torture chamber where each prisoner must face his or her own worst nightmare, fear or phobia.
For Bernie Ripoll, chairman of the Parliamentary Joint Committee (PJC) on Corporations and Financial Services, there are no rats or snakes in his Room 101, only the specter of delay, deferment and, ultimately, failure of his government’s financial services reforms.
Speaking at “The Final Countdown”, a roundtable discussion convened by Professional Planner earlier this week, Ripoll conceded the stakes had never been higher.
“My greatest fear right now would be that through either a political process, or any other process, what has been an enormous body of work and, I think, a general acceptance that it’s all in the right direction for the right reasons, is scuttled or delayed indefinitely because of some minor issues,” he said.
“Because I don’t see any major issues any longer. I think we can work through all of the issues and have the sector really move on with some certainty.
“And whatever comes out through experience – the unintended consequences element – can always be rectified reasonably quickly through amendment or otherwise.
“But I’m pretty confident that we’ve now got some really sound legislation before us, whatever might come between now and July 1.”
The PJC is presently reviewing both tranches of the Future of Financial Advice (FoFA) legislation and will report back to Parliament on 29 February.
While submissions to and public hearings conducted by the PJC have tended to question policy intent, the committee’s mandate has been to look at the detail of the proposed reforms and any unintended consequences.
However, there is no doubt that fear and uncertainty have clouded the waters.
“Legislation is open to interpretation and, if anything, for me what really came out of the two-day public enquiry we had were people’s genuine capacity to over-read, over-reach and overdo what’s in front of them,” said Ripoll.
“Even to the point where the carve out for banking products was: ‘Is it really a carve out for banking products?’ Yes it is. ‘But is a carve out a carve out?’ ‘When is a carve out not a carve out?’ – I mean to the point of ridiculous.
“And I can understand that because it’s uncharted waters. It’s new. But I don’t think people ought to over-reach, over-read.”
Jacqueline, this is probably just our: “genuine capacity to over-read, over-reach and overdo what’s in front of them”. Seriously, what planet is this guy on?
My greatest fear is that FoFA will be rushed through without consideration of the consequences, and that the average Australian will be worse off as a result. Unfortunately it appears as though the consultation process is not having much impact on the outcomes. Most of the people giving evidence are “consultants” or people that are employees of associations or interest groups – with no “skin in the game”. Many of then do not let the truth get in the way of a good story!
The losers will be the ordinary Australians who can no longer afford unbiased financial advice from independent financial planners, who will be priced out of business by red tape and anticompetitive legislation that favours the vocal, powerful, cashed up industry players who want to decimate their competition.
Quote: “And whatever comes out through experience – the unintended consequences element – can always be rectified reasonably quickly through amendment or otherwise.”
Yes, Mr Ripolli, just like the frozen funds debacle has been rectified!
I agree with Jacqueline totally. The whole problem, Mr Ripoll, is that people like yourself who do not own, run and employ Australians in this sector have no idea whatsoever the damage that you are doing. These are decisions on the run by people who have not even worked in this sector, but then again we are also dealing with a Govt that is corrupt and dishonest, the vested interest displayed towards the industry fund sector is just beyond belief. The Prime Minister personally gets up and thanks what she calls her comrades in the Industry fund sector for their unwavering support. It is disgusting, and you Mr Ripoll should hang your head in shame. Your uneducated comments are a disgrace of the highest order.
Quote: “And whatever comes out through experience – the unintended consequences element – can always be rectified reasonably quickly through amendment or otherwise.”
The problem with unintended consequences, Mr Ripoll, are that business’ get destroyed in the process. I guess that it does not matter as long as no politician gets hurt in the process.