AIOFP attacks political donations by banks, FSC and FPA

Federal parliamentarians have been urged to scrutinise the donation lists to political parties with suggestions that the major banks and financial services lobby groups have been influential in ensuring they are excluded the compensation scheme of last resort (CSLR).

The Association of Independently Owned Financial Professionals (AIOFP) has written to the parliamentarians including a spreadsheet obtained from the Australian Electoral Commission (AEC) web site detailing political donations and has pinpointed those made by the major banks and other financial institutions plus the Financial Servicers Council (FSC) and the (FPA).

AIOFP executive director, Peter Johnston’s e-mail to the Parliamentarians suggests that the data should convince them to “act in the best interests of consumers by NOT agreeing with Minister Hume trying to amend Commissioner Haynes recommendations of a pre dated SCHEME that includes all Banks/Institutions and financial products”.

“CSLR is separating Advice from Product and the Banks/Institutions are finally being held to account for their poor management,” his e-mail said.

“This time they cannot spin the blame onto Advisers.”

In a letter to the AIOFP board attached to the e-mail Johnson has also sought to point the finger at the FSC and FPA claiming their donations have been aimed at maintaining influence with the political parties.

“It is interesting that all Government and other parties have an eager ear for the FPA and FSC – their donations may be why? Considering they are largely funded by the Banks it should be considered as another Bank revenue source.”

“The “Democracy for sale” website states that Financial Services are the largest contributions to the LNP with $44,249,111 in reportable donations.  It almost doubles the second largest contributor  – developers/property industry,” Johnson’s message to his board said.