New Shadow Minister for Financial Services Pat Conaghan believes there was strong merit to the policies led by his predecessor but intends to continue to work with industry bodies to reassess the party’s approach to financial services reform.
The Coalition once again turned to a representative with no previous parliamentary or work experience in financial services, appointing the National Party member and regional NSW MP to the role when the shadow cabinet was announced this week by Opposition Leader Sussan Ley.
“While it is very early days in my appointment as the Shadow Minister for Financial Services, I will be working closely with my colleagues in due course to assess all policies that were taken to the last election by the Coalition,” Conaghan told Professional Planner in a statement.
“There was considerable merit in the policies produced and they were created in close conjunction with industry bodies. As a National Party Member, I look forward to ensuring that the lens of regional people and business is also applied.”
Conaghan was a proponent of the $20 billion Regional Australia Future Fund promised by the Coalition that would preserve a portion of commodity windfall receipts towards to fund regional development projects.
The RAFF would join other funds managed by the Australian’s government sovereign wealth fund, the Future Fund, like the Housing Australia Future Fund which was established in the previous Albanese government term.
Conaghan’s career has shifted from being a detective, a prosecutor, and a criminal defence lawyer before being elected in 2019 as the member of Cowper, which stretches from Port Macquarie to Coffs Harbour.
Conaghan’s public profile describes reducing red tape as a policy priority. According to industry sources, Professional Planner understands Conaghan is seen as an influential member of the National Party.
In his six years in Parliament, Conaghan’s most notable event was criticising Greens member Max Chandler-Mather for not wearing a tie on the floor of the House of Representatives.
“This is not a barbecue. This is question time in the Australian parliament. What next, board shorts and thongs? Maybe a onesie in winter,” Conaghan was quoted in the Sydney Morning Herald after the incident.
Financial Advice Association Australia chief executive Sarah Abood said the association looks forward to working constructively with the new shadow minister.
“The Australian financial advice sector requires substantial reform to achieve a regulatory regime that will deliver improved access and affordability of financial advice for Australians,” Abood said.
Out of category
Conaghan’s selection to the role was an out of category appointment, similar to his predecessor Luke Howarth in 2024.
Howarth spent his short tenure making inroads rebuilding relationships with an advice community battered by reforms brought in by the Coalition, largely due to the Hayne royal commission.
The FAAA’s federal election tracker showed more favourable results towards the Coalition on advice related reforms, including concluding the Delivering Better Financial Outcomes legislation, reforming the Compensation Scheme of Last Resort and reducing red tape.
But Howarth, along with former adviser Bert van Manen, lost his Queensland seat in an unexpected election result that saw Labor increase their majority.
The appointment of Conaghan also comes with the caveat of whether the troubled Coalition can maintain its relationship after teasing a split post-election.
Angus Taylor will move on from the Shadow Treasurer role to become Minister for Defence and will be joined by Nationals recruit Jacinta Nampijinpa Price. Price is Shadow Minister for Defence Industry and Shadow Minister for Defence Personnel, after switching parties to run as Taylor’s deputy leader in the post-election leadership contest won by Ley.
Liberal National Party of Queensland member Ted O’Brien will replace Taylor as Shadow Treasurer and deputy leader.
Depleted options
Fervent super critics like Victorian MP Tim Wilson and NSW Senator Andrew Bragg will also remain in other portfolios.
Bragg will be Shadow Minister for Housing and Homelessness and Shadow Minister for Productivity and Deregulation.
Wilson, who returns to parliament after his defeat in 2022 to Teal independent Zoe Daniel, will be appointed Shadow Minister for Small Business and Shadow Minister for Industrial Relations and Employment.
Wilson has been a vocal critic of Division 296, which reduces concessional tax rates on super funds with balances over $3 million, and it could be a missed opportunity to have an aggressive political attack dog at a time when fervent debate over the policy dominates front page on mainstream business news coverage.
Lower-profile Coalition members like WA Senator Dean Smith and Queensland Senator Paul Scarr, who have financial services experience, have also been appointed elsewhere.
Smith will be Shadow Assistant Minister for Foreign Affairs and Trade and Shadow Assistant Minister for Energy and Emissions Reduction. Scarr was appointed Shadow Minister for Immigration.
Former financial services minister Jane Hume has lost a spot on the frontbench after holding the shadow Finance portfolio after the Coalition were defeated in 2022.
Hume was tipped to leave the financial services portfolio win or lose after the 2022 election and move up the party, but has since taken much of the blame for this month’s election result, along with Taylor.
