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Australian Bankers Association
Bank Bashing – Part 2
John Hewison
Founder and Director
15 Dec 2010
After all the huff and puff from the Treasurer Mr Swan and the Minister for Finance Penny Wong, egged on by the Shadow Treasurer Joe Hockey, we finally see the promised massive reform that will revolutionise the banking industry and encourage Australians to go down the street to get a better deal. Oh really?
When is the penny going to drop for our courageous Treasurer – you cannot interfere with private enterprise with completely misguided legislation. The private sector will price to make a profit. The banning of exit fees will only serve to increase entry fees and interest rates, probably to the detriment of the very institutions the Treasurer refers to as the “fifth pillar” – the credit unions, building societies and second tier lenders. John Symonds (Aussie home loans) has branded the plan as “pathetic”. Steven Munchenberg CEO of the Australian Bankers Association is quoted “Removing the ability to levy that (exit fees) would disproportionately hit smaller lenders”. “…plans to make account numbers portable…would be difficult and expensive.”
To quote Mr Symonds again ..”the suggestion that mutuals can become a fifth pillar is a joke” – and so say all of us. Mr Swan, if it ain’t broke, don’t fix it!
Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.