News of assistant treasurer Sinodinos’s standing aside came as legislation aimed at making major changes to the Future of Financial Advice Act and other regulations was due to be introduced imminently into the country’s Parliament, as part of what is being called there “Red Tape Day”.
Prime Minister Tony Abbott, who was elected last September, has vowed to cut A$1bn in red tape annually. The Future of Financial Advice Act is one of a number of regulations being targeted.
As reported, the recently elected Labor Government recently consulted with Australia's advisory industry on draft rules that would make it easier for advisers to receive commissions and other so-called “conflicted payments”, which had been banned by the signing into law of FOFA in 2011.
Clients also would no longer have to renew their ongoing fee arrangements with their advisers every two years, while advisers wouldn’t need to provide fee disclosure statements after July 1, 2013.
Demands from opposition, Greens
According to The Australian, Sinodinos’s standing aside comes “in the wake of increasing pressure from the opposition and the Greens, who earlier today demanded Mr Sinodinos explain inconsistencies between a statement he gave to parliament in 2013 and evidence heard at a corruption inquiry”.
The prime minister told a question time audience that the senator would cooperate fully with the corruption investigation and would answer all questions put to him.
The matter at issue dates back to 2008 when Sinodinos was a NSW Liberal Party treasurer, The Australian said. It added that he had “consistently denied any wrongdoing”.
Last week Sinodinos appeared on Australian national television to discuss the controversial plans to makes changes to FOFA, and revealed that the Australian Securities and Investments Commission would be tasked with monitoring the changes, if they go ahead.
