No hint of irony from Westpac this week, as their submission to the Senate inquiry on financial advice argued for more government regulation in the financial planning industry.
Yes, one of the big four banks, who for years argued against the government sticking its nose into financial planning with FoFA laws, was now backing tougher regulation of ASIC’s Australian Financial Services License (AFSL) application process!
As Westpac said in its submission, “we believe there is scope to further strengthen the licensing process to ensure that only appropriately resourced and well-governed providers are able to obtain an AFSL.”
Translated: “we believe the government should frustrate the efforts of any further independent competition entering the financial planning industry, ensuring our market share is protected.”
In true rent seeking fashion, it’s hilarious how Westpac picks and chooses where the government should position itself. Even more hilarious is how they portray themselves as a consumer advocate in every instance. Their objection to FoFA and less regulation was cloaked in their utmost concern for the consumer. Funnily enough, they also cloaked their call for more regulation and tighter AFSLs in their utmost concern for the consumer.
One guess for where Westpac’s concern actually lies…
Meanwhile, the recent Murray Financial System Inquiry had some pointed words from active investment managers.
The report highlighted “costly asset management and active investment strategies” as the second most significant issue driving higher costs and fees within superannuation.
As we continue to preach, there’s little point lumping investors with the extra costs of active management when there’s ongoing proof it provides no extra benefit to the investor.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
