AFA takes a stand on unfair criticism of Financial Advisers

AFA News 24 June 2021. On Friday 18 June 2021, the AFA issued a media release calling for a stop to unfair and unreasonable statements about financial advisers in the Parliament and through the media.  This call was triggered by a speech by a Senator last Thursday as part of a debate on a Bill involving the maximum number of SMSF members.

During a debate in the Senate on Thursday 17 June 2021, NSW Senator Jenny McAllister spoke about a submission prepared by Super Consumers Australia , opposing a Bill to increase the maximum number of members in an SMSF from 4 to 6.  Senator McAllister said:

“…the risk is that the people who will benefit most from these arrangements are financial advisers giving shonky advice—the kind of advice we’ve seen again and again and again, the kind of advice exposed in the Hayne royal commission. There are inadequate protections for consumers, and this bill further exposes people to these risks.”

This statement was just the latest in a long stream of similar statements by politicians. The AFA formed the view that this type of unfair treatment must stop and decided to make a public statement to this effect.  This type of behaviour only encourages the media to do similar things, and it is therefore important that we call this out and do everything that we can to bring it to a halt.

Please click here to see a copy of the speech, or the video of the speech by Senator McAllister and the response by Minister Hume, where she criticised Senator McAllister’s comments:

“it’s rather unfortunate and, indeed, disingenuous of the opposition to disparage the good work that financial advisers do and the contribution that they make to the financial wellbeing of thousands and thousands of Australians.”

The Government were successful last Thursday in passing not only the Bill to increase the maximum number of members of an SMSF fund from 4 to 6, but also the Your Future, Your Super Bill, that introduces the stapling of members to a super fund, the introduction of a best financial interests’ duty and measures around investment performance.


Issued 24.06.2021. AFA Policy & Education Update