Good council on finance
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HEAR THIS: Defence Minister Brendan Nelson at the launch of the new Australian Defence Force Financial Services Consumer Council in Canberra on September 15.
Photo: Doc Doherty
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By Barry Rollings
The new Australian Defence Force Financial Services Consumer Council would have retention and welfare benefits Defence Minister Brendan Nelson told its launch in Canberra on September 15.
The council would provide credible and independent financial education to all Australian Defence Force members and their families, and assist ADF members make informed decisions about their financial futures. The council will not provide individual financial advice but will focus on improving the financial literacy of ADF members and their families.
“The council’s three key priorities will in no small way contribute to a number of our retention and management issues,” Dr Nelson said.
“ADF personnel and their families will receive well-informed, consistent, independent and professional advice about consumer issues of a financial nature.
“It’s not about directing them to one particular product supplier or another but rather educating them about the myriad things that are available to them, helping them avoid pitfalls in terms of investment and ensuring that through seminars, DVDs, service publications, the intranet and a variety of sources – they get the right advice.
“The Service Chiefs will be able to receive really good advice about issues in the broad strategic policy sense, of a financial nature, especially when it comes to things like superannuation, retirement planning and services that are very important for Defence.
“The third very important priority concerns relations with the financial regulators the ACCC [Australian Competition and Consumer Commission] and ASIC [Australian Securities and Investments Commission].
“I think we have the right people on it [the council] and it will make a difference not only to individual lives of our personnel and their families but that they can also have confidence they have good advice about understanding investment of their hard-earned money.”
The council is independent, consisting of a range of people within and outside Defence, combining service experience with extensive knowledge of the financial services industry.
The chairman is Mr Ken Kipping, a long-time supporter of the ADF and consumer advocate, with wide experience in the insurance, superannuation and financial services industries.
He is joined by Wing Commander Robert Brown, national chairman of the Institute of Chartered Accountants financial planning committee and board member of the St James Ethics Centre and RAAF Specialist Reservist; Mr Glen Tye, Defence’s Director of Personnel Support and Amenities; and the three Directors-General Personnel of the Navy, Army and Air Force, Commodore Nigel Coates, Brigadier Paul Symon and Air Commodore Lee Roberts.
The council will develop educational resources, training and guidance with ASIC and the ACCC.
The CDF ACM Angus Houston said the council had its origins in discussions between himself, other Service Chiefs, Mr Kipping and WGCDR Brown after realising that service people often struck difficulties in matters such as banking, insurance, lending, superannuation, and investment products and services.
“I think that those of us who have been Commanding Officers know that some people get into strife with the finance industry from time to time,” ACM Houston said.
“It was quite clear we needed a better basis for financial education.
“The second part is the right advice to the defence leadership. We have some rather large corporate entities in Defence - health and welfare - and clearly from time to time there is the need for really expert finance advice. “The council will provide a basis for constructive relations with our regulators ASIC and the ACCC.”
Mr Kipping said the fact that service life was unique and special had to be addressed.
The needs of personnel should be met and the council would be engaged in improved financial welfare of the sailors and their families.
