Tony Abbott's reforms saved by Clive Palmer deal
THE Abbott government has rescued its financial advice laws through an 11th hour deal with the Palmer United Party but the changes have drawn harsh criticism for increasing red tape and diminishing the rights of investors.
The regulations will allow financial planners associated with banks to continue to receive payments for directing customers towards the banks' own products.
Finance Minister Mathias Cormann revealed in the Senate that the government had agreed with the balance-of-power senators to introduce further protections as a condition of their support for the unravelling of changes made under the previous Labor government.
It capped a tumultuous few days during which Labor tabled the government's reforms against its wishes and Clive Palmer said negotiations with the Coalition were not taking place when they obviously were.
The deal, first reported by Fairfax Media on Tuesday, caught Labor and the Greens by surprise and saw them attempt to block the changes with a motion of disallowance in the Senate. The final Senate vote of 31-34 for disallowance meant the attempt to strike down the changes failed.