‘BEING REALLY ANGRY’ is not enough – CSLR
We agree with the FAAA about the CSLR outcome BUT the question is what can we do about it? Being ‘really angry’ in the media means nothing to Politicians, they will spin it that ‘Advisers want to take away a consumer protection mechanism that they are responsible for.’ [see below]
This is of course totally erroneous, but CSLR has been recently legislated and we must implement some specific political strategies to have any chance of amending it.
Like AFCA, CSLR will never be abolished, it is now a ‘sacred cow’ of consumer protection, Canberra Bureaucrats will not touch it – only highly pressured Politicians will. We have been reporting on the potential CSLR negative ramifications for our industry over the past 4 years, it is a classic case of Politicians only implementing specific aspects of the Hayne Recommendations that suits their agenda.
Ever since Commissioner Hayne recommended CSLR should commence retrospectively from January 1st 2008 capturing all of the Institutions $30 + billion of failed funds it was politically doomed. Both sides of politics pledged to implement the original specifications whilst in Opposition but acquiesced when in power. [see document already sent re Frydenberg position in 2019 – page 36/37]
WHY? No doubt the Institutional lobby reminded both sides of politics about the millions they receive in donations……and asked whether they want them to continue……..you can imagine the response.
With an early election in 2024 now unlikely, the Advice community has 12 months to position itself to intimidate both sides of politics with votes and cash. The key issues are –
- engage our clients with the politics behind the cost of advice by lobbying their local Federal Politician.
- raise some capital to ‘fight fire with fire’ with strategic donations.
- threaten to intervene in marginal seats. When a Politicians seat is on the line and the unemployment queue beckons, self – interest will always win.
The AIOFP chose this path at the last election with some success, we can do it again. Fence sitting Associations get shot from both sides, we need to make a meaningful stand and the greater numbers involved the greater chance we have of success.
You recommending any non AIOFP members to join our community is a good start, please feel free to send this information onto them.
Peter Johnston | Executive Director
