AFA says LIF debate ‘based on ideology’

In a speech to advisers at the AFA’s National Practitioner Roadshow in Sydney on Monday, Mr Fox said it was irrelevant whether people agree on ideology, because ideology is an ingrained set of beliefs.

“[The LIF debate] has been an issue that is based on ideology, and the thing with ideologies is that they’re very difficult to shift and to change,” Mr Fox said.

“Our politicians, regardless of which team or colour they come from, are of the view – which the consumer groups hold, the consumer action law centres hold, Choice [magazine] holds as well – is that commissions equal conflict of interest.

“That’s an ideological point of view. It doesn’t have to be right or wrong, but the strength of an ideology means that it is hard to shift.”

Mr Fox also noted the implications around ideology for the incoming Senate on LIF reforms.

“We know that [Senator Nick] Xenophon doesn’t want commissions,” he said.

“We know that the Greens really don’t want commissions.

“We know that Labor would rather see clawback [go] longer and probably [want] level commissions.

“And we know that [Senator-elect Pauline] Hanson will follow somebody else who might know, which is probably going to be Xenophon,” Mr Fox concluded.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].