The Coalition has released a new policy paper which confirms it would amend the Future of Financial Advice (FOFA) legislation to “reduce compliance costs for small business financial advisers”, if elected to Government at the next Federal Election.
The 'Policy to Boost Productivity and Reduce Regulation’ paper, released yesterday, points to the Financial Services Council’s estimation that FOFA would cost the industry up to $700 million to implement and $375 million in annual compliance.
The document reiterates the Shadow Minister for Financial Services Mathias Cormann’s promise from last year that the Coalition, if elected, would implement all 16 recommendations made as part of the Parliamentary Joint Committee inquiry into FOFA.
Those changes would include the complete removal of the opt-in requirement, refining the ban on commissions on risk insurance inside super, streamlining the fee disclosure statement requirements, improving the best interests duty and providing certainty around the provision of scaled advice, among others.
The paper came after an unsuccessful last-minute attempt by the financial services industry to convince the newly-appointed Rudd Government to delay the FOFA implementation date, due to growing concerns about potential non-compliance.
At the Financial Services Council’s national conference last August, Cormann confirmed the Coalition had already drafted the 16 amendments to FOFA and promised it would move quickly to implement those changes.
