TheInvestment and Financial Services Association(IFSA) and theFinancial Planning Association(FPA) have joined forces in support of the Financial Services Reform Act (FSRA), following criticism from the industry over its effectiveness in delivering better consumer outcomes.
IFSA and the FPA will pursue several joint initiatives during 2003 to enhance disclosure and consumer understanding of documentation and terms.
These initiatives will include consumer testing of a financial services guide template, a joint submission on risk disclosure to the Parliamentary Committee on Corporations and Financial Services, the establishment of a fee calculator and the development of an improved Product Disclosure Statement.
IFSA chief executive officer Richard Gilbert says the collaboration signals a strong industry commitment to the FSRA, and urges the market to give the new legislation a “fair go” during its introduction period.
“Both IFSA and the FPA remain committed to the FSRA and will work to continuously improve industry transparency and understanding. However, this is made more difficult when market commentary aims to destabilise consumer confidence in the financial services industry,” Gilbert said.
In emphasising the FPA’s support for the FSRA, chief executive Ken Breakspear also highlighted the importance of industry associations taking a leadership role in determining how the legislation will operate in a practical sense.
“We remain confident about the soundness of the FSRA regulatory framework and do not see the need for further major changes to our industry standards. The emphasis, as always, must be on the diligent application of these governing regulatory principles to the specific needs of the consumer,” Breakspear says.
