The Financial Planning Association (FPA) has sought to strongly rebut industry fund suggestions that the Government’s proposed changes to the Future of Financial Advice (FOFA) arrangements will compromise planners’ best interest obligations.
In a strongly-worded statement issued this evening, FPA chief executive Mark Rantall referred to the “rhetoric and unnecessary scare-mongering” which was clouding the facts about proposed amendments to the best interest duty.
He said Australian consumers had nothing to fear from the proposed changes and indicated that those who suggested otherwise were acting in a self-interested manner.
“We are witnessing an extraordinary effort by product providers and those who represent them to build a political position – based on flimsy arguments – in defence of a redundant section of FOFA pertaining to the best interests duty,” he said. “In this case the facts really do speak for themselves. Consumers have nothing to fear from the proposed amendments.”
The FPA has issued a statement regarding what it says are the facts about the best interests duty, particularly the fact that it is a statutory obligation and that the industry had pushed for the safe harbour steps.
