Finance Minister Mathias Cormann has taken over the federal financial services portfolio after Assistant Treasurer Arthur Sinodinos stepped down from the role last week.

Senator Sinodinos has left the portfolio while the NSW Independent Commission Against Corruption investigates allegations related to Australian Water Holdings, where he was chairman.

“I have been called as a witness to the [commission] and, as I have said on the public record on numerous occasions, I will be co-operating with the inquiry,” he told the Senate last week.

“I do not want this sideshow to be an unnecessary distraction to the important work of the Government.”

Senator Sinodinos stepped down on the day the Government introduced changes to the Future of Financial Advice legislation – changes driven by Senator Cormann when he held the financial services portfolio in opposition.

Senator Cormann was widely respected by the industry while in opposition, and there was disappointment when he was appointed to the finance ministry on the Coalition’s election.