The Financial Planning Association (FPA) is concerned about the opt-in requirements and the banning of risk commissions within superannuation in the Government’s Future of Financial Advice (FOFA) reforms, but says a detailed examination of the reforms is needed to understand how they will affect consumers and FPA members.
Amending the client renewal opt-in to two years is not the FPA’s preferred outcome, and the FPA does not believe opt-in should be legislated, but awaits the detail in the draft legislation to understand how concerns about administration, penalties and consumer protection are addressed, the FPA stated.
Regarding the insurance commission ban inside superannuation, the FPA said it continues to support insurance commissions until a valid alternative remuneration structure is available.
“While we are pleased that this has not extended to insurance commissions outside superannuation, we believe insurance commissions across the sector should be maintained,” the FPA stated.
