Former lawyer and trade unionist Bill Shorten has been rewarded with the key portfolio of financial services and superannuation in a reshuffle announced on Saturday by Prime Minister Julia Gillard.

Mr Shorten replaces Chris Bowen, who has in turn received a promotion to Immigration Minister. Mr Shorten also assumes the title of Assistant Treasurer from Tasmanian Senator Nick Sherry, who has been given an apparent demotion to Minister for Small Business.

Well-regarded former Minister for Competition Policy Craig Emerson has also been dropped from a Treasury portfolio.

Joining Mr Shorten on the revamped front bench is former Climate Change Minister Penny Wong. Her performance in the climate change portfolio – criticised by most commentators – hasn’t diminished her standing in the eyes of Ms Gillard, who has promoted her to cabinet and the ministerial portfolio for Finance and Deregulation.

Senator Wong replaces former Melbourne MP Lindsay Tanner, who retired at the federal election.

While lacking extensive financial services experience, Mr Shorten’s appointment is seen as a boon for the superannuation sector in particular. The former AWU National Secretary served as a director of the Superannuation Trust of Australia and the Victorian Funds Management Corporation.

Mr Shorten also has an MBA from Melbourne Business School and despite his union background is well regarded within business circles as a fair negotiator and creative thinker.

In his maiden speech to Parliament in 2008, Shorten spoke of reducing the regulatory burden, promoting competition and providing “regulator certainty”. Mr Shorten is also seen as an advocate of tax reform.

Mr Shorten’s views of the recommendations of the Ripoll, Cooper and Henry reports will be sought in the coming days and weeks, particularly his stance on commissions paid to financial planners.

Financial Services Council CEO John Brogden welcomed Mr Shorten’s appointment. “I know Bill from my time in politics and found him very good to deal with,” he told insuranceNEWS.com.au.

The Financial Planning Association Deputy CEO Deen Sanders says the association “looks forward to Mr Shorten bringing the same passion to this vital area of national interest” as he did to his former work in the superannuation area.

Insurance Council of Australia CEO Rob Whelan was not available for comment on the appointments.

Senator Wong’s appointment as Finance and Deregulation Minister is a surprise move, as the former lawyer and union official has no previous experience in economics. She studied Arts/Law at the University of Adelaide, joining the CFMEU upon graduating as an industrial officer.

Her experience prior to joining Parliament in 2001 also included two years as an adviser to timber workers and the NSW Government.