The Financial Services Council (FSC) has written to the new Labor government asking for a one-year extension on the implementation of the Future of Financial Advice (FOFA) and Stronger Super reforms.
FSC chief executive John Brogden, speaking at an FSC event earlier today, said the reforms were the widest and deepest ever in financial services and that the industry needed some more time to implement them properly.
He said the driver for the request was the speech given last night by newly sworn-in Prime Minister Kevin Rudd who stated his government wanted to work closely with business, with FSC taking the opportunity to show the government how it could work with the financial services industry.
“There has been a level of indecent haste towards 1 June this year and there is concern about non-compliance in the industry,” Brodgen said.
“We’ve yet to see all the regulation and legislation. We’re not thinking of trying to repeal FOFA or make any changes, but rather seeking a change in the implementation date.”
Brogden added that if the extension was not granted there would likely be risk of high levels of non-compliance across the industry as it struggled to bed down parts of regulations which have only been or are yet to be released.
He added the FSC had had a good relationship with newly sworn-in Prime Minister Kevin Rudd and Treasurer Chris Bowen in when they last held office, as well as when they were in Opposition, and said FSC had no concerns about working with them in the coming weeks.
However Brogden said the FSC believed an election after the currently set date of September 14 would be too late as business wanted certainty and would be seeking a majority government to regain control over the reform agenda.
