The Association of Financial Advisers (AFA) will soon launch a grassroots lobbying campaign around the Future of Financial Advice (FOFA) amendments, which will counter what it calls a “scare-mongering” campaign regarding consumer protection.
The AFA chief executive officer Brad Fox told Money Management the campaign would see its members engaging personally with their federal elected representatives in both the lower house and the Senate to ensure they are all well informed on the FOFA amendments.
“What’s concerning is that some of the reporting out there in the mass media is bordering on scare-mongering,” Fox said. “They are painting all of the amendments in a bad light in terms of consumer protection and claiming consumers would be worse off.
“We need to make sure our local members are well informed when it comes to the FOFA legislation and that by removing part G of the best interests duty, we are creating clarity for advisers rather than putting consumers at risk.”
While Fox agreed consumer protection was absolutely essential, he said there came a point where consumers become over-protected – and with that the industry loses the ability to provide effective advice.
FOFA in its current form, according to Fox, over-protects. However, he said the industry must not get complacent.
“I think it’s important that we recognise that these changes, at these stage, are not legislated. Until they are legislated FOFA isn’t amended,” he said.
“We need to keep lobbying and getting people to understand those changes by educating them and providing the right information.”
He said the AFA needs to approach Labor members as well.
“Labor has talked endlessly about restructuring their party and changing the way they do things; their elected members would have an important voice in their caucus on issues like this,” Fox said.
