The motion failed to gain the support of the major parties in the Senate on Wednesday night, with only 14 senators voting in favour of the government establishing a royal commission and 39 voting against, as reported by SMSF Adviser’s sister publication ifa.
SMSF Association senior manager, technical and policy, Jordan George said the association does not believe a royal commission is necessary at this point.
“The important reforms suggested by the PJC on Corporations and Financial Services Inquiry into financial advice should be allowed to be implemented and take effect,” said Mr George.
“We strongly support the thrust of these reforms and believe that they will go a long way to rebuilding consumer confidence in financial advice.”
Quantum Financial Planning principal Tim MacKay said given the financial services industry is a major source of donations to both political parties, a royal commission is unlikely.
“I simply can’t see it being in either party’s political interests to support a royal commission into the industry,” he said.
Verante Financial Planning director and founder of Eviser.com.au Liam Shorte agreed that the industry should stop expecting the government to call a royal commission since there are “too many vested interests with large lobbying power[s] that prefer that status quo”.
“I feel that professional financial planners who want to make a difference need to step up and assume leading positions in the industry and associations so that we can influence the future culture,” said Mr Shorte.
“People won’t suddenly trust the profession because of a royal commission or its final report and government actions; it is up to us to change people’s impression of financial planning, one client at a time, and by bringing our peers and younger colleagues on that journey.”