Friday, 27 April 2018

Nationals MP for Page Kevin Hogan jumps on the bandwagon now royal commission is revealing truths about Australian banking, finance and insurance sectors

There has been some 'emergency' repositioning occurring in Turnbull Government circles since Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry hearings began to reveal the extent of bad behaviour in the banking, finance and insurance sectors.

Former money market and bond trader with State Bank of NSW & Colonial State Bank,
former investment officer with the Australian Catholic Superannuation and Retirement Fund, former accountant and current Nationals MP for Page, Kevin Hogan, joined in on 20 April 2017.

Posting a video clip of what appears to be the one occasion he openly expressed disappointment with a bank during a committee hearing last year.

Note: For those interested in the exact wording of the exchange Hogan posted it on YouTube on 9 March 2017.

Even though Hogan was on the House of Representatives Standing Committee on Economics when it conducted a 2016-17 inquiry into Australia’s four major banks and the Committee's recommendations clearly showed that the inquiry revealed serious deficiencies in bank practices, he has never been on his feet in the House of Representatives calling the banks out for unethical behaviour or supporting a call for a royal commission.

He certainly never voted for the creation of such a royal commission in October 2016 or June 2017.

Perhaps because the National Party of Australia has received over $1.15 million in political donation from the banking, finance and insurance sectors since the 2012-13 financial year - and MPs probably expect more donations ahead of the forthcoming federal election?

Mr. Hogan might allow himself to become a little more animated in his disapproval given some of the evidence involves the actions of independent financial advisers such as the jaw dropping example set out below,

But maybe not. There might be a smidgen of fellow feeling there, because Kevin Hogan just like the hapless Sam Henderson was also an independent superannuation consultant and before that had a regular financial segment on Sky News.  

ABC News, 24 April 2018:

A public servant was impersonated while receiving financial advice from a high-profile financial planner, the banking royal commission has heard.

Donna McKenna, who is a Fair Work commissioner, told the inquiry she went to firm Henderson Maxwell after seeing its chief executive Sam Henderson in the media.
Ms McKenna said if she had followed the advice Mr Henderson gave her, she would have lost $500,000.

Mr Henderson followed Ms McKenna in the witness stand.

The financial planner is a regular media personality, with a show on Sky News Business channel and articles published in the Australian Financial Review and Money Magazine.

Mr Henderson's appearance before the commission did not get off to a good start, when it was revealed he does not have a Master of Commerce degree, as stated in a 2016 financial services guide from the firm.

The hearing was then played a damning recording of a Henderson Maxwell employee impersonating Ms McKenna in several phone calls to her super fund.

In the recordings, the employee can be heard giving Ms McKenna's membership number and the State Authorities Superannuation Scheme (SASS) representative refers to her as Donna….

he inquiry heard up to six phone calls were made to the SASS super fund by Henderson Maxwell's customer service officer.

Mr Henderson said the information his employee had provided him about Ms McKenna's account was inconsistent with the information given to him by Ms McKenna.

Mr Henderson refunded Ms McKenna the nearly $5,000 in upfront advice fees she had paid.

The customer service officer who impersonated Ms McKenna was not fired…..

Ms McKenna made a complaint to the Financial Planning Association (FPA) about the quality of the advice.

Despite complaining in March last year, the complaint is still not finalised.

The inquiry heard Mr Henderson responded to the complaint in a lengthy letter to the FPA, describing Ms McKenna as "nitpicky" and her complaint as a "barrage of aggressive and presumptive accusations".

In March this year, Mr Henderson proposed a deal with the FPA that would see him admit to multiple failings in the financial advice he provided to Ms McKenna and agree to implement a number of changes at the firm.

The deal would have also required the FPA to agree to not publish Mr Henderson's name in relation to the proceedings.

The FPA wanted an additional provision that would prevent Mr Henderson appearing in the media for a year.

That proposal was not acceptable to Mr Henderson and the complaint has not yet been formally resolved…..

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