The Federal Opposition has committed to assisting the Government in extending the implementation date for the Future of Financial Advice (FOFA) changes.
The Shadow Assistant Treasurer, Senator Mathias Cormann, has told Money Management that the extension of time is warranted and the Coalition would assist the Government in seeking such an outcome.
Reacting to calls by Financial Services Council chief executive, John Brogden for an extension of the FOFA and Stronger Super arrangements, Cormann said such a move was justified.
“The implementation of FOFA and Stronger Super clearly should be extended by 12 months,” Cormann said. “The Government’s disjointed and chaotic handling of complex FOFA and Stronger Super legislation means that financial services businesses across Australia will not be in a position to comply from next Monday.”
“It is highly undesirable to have large numbers of financial services providers forced into a situation where they have no chance but to be non-compliant,” he said. “The government clearly should provide immediate certainty on this and announce and initiate an extension of the implementation date before Parliament rises tomorrow.”
Association of Financial Advisers chief executive, Brad Fox said the industry was not trying to duck its obligations, but some level of delay would be appropriate to ensure everyone was appropriately prepared.
“I think it is fair to say that almost everyone has underestimated the level of challenge that has been involved in being appropriately prepared,” he said.
