Advisers call for O'Dwyer boycott

In a document outlining its political strategy for the upcoming election – where the adviser body has pledged to mobilise against Coalition MPs in marginal seats – the AIOFP stated that “some members have advised they will be boycotting any manufacturers who appoint former minister Kelly O'Dwyer to their board or management for her past handling and decision making within our industry”.

“The advice industry does not have any confidence in Ms O'Dywer due to her lack of support for advisers while she was the financial services minister,” AIOFP executive director Peter Johnston said.

“Members are having difficulties with understanding how a person who is responsible for structuring and advocating the failed LIF and FASEA legislation, that has caused catastrophic financial damage to the advice industry including numerous job losses and mental health problems, can be rewarded with prime industry roles. 

“It just does not seem fair and reasonable to many members and they want to do something about it.”

Ms O'Dwyer has landed a spate of board appointments in the financial services industry recently, joining investment banking start-up Barrenjoey Capital Partners as a director as well as being elevated to the board of Equity Trustees and commercial property group HomeCo.

She was responsible for overseeing some of the most sweeping reforms to financial services including the establishment of FASEA and AFCA, the 2017 super changes and the passage of LIF legislation through Parliament, and retired from politics in 2019 amid polling that showed she could be in danger of losing her Victorian seat of Higgins.

The potential boycott forms part of a broader campaign on behalf of the adviser association to register its displeasure with the Coalition at the ballot box in the coming federal election, which Labor has suggested could be held early next year.

“With around 20,000 advisers with 200 clients each, the circa 4 million voters over 18 years represent 20 per cent of the Australian voting community – a significant number even by half,” the AIOFP said.

“Every adviser needs to engage with their clients to inform them of why the cost of advice has escalated over the past five years and the distinct possibility of the banks making a comeback into the advice market with digital solutions. Issues that cost consumers money and are linked to banks behaving badly are powerful divisive political messages we can capitalise on.”