The Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann has said a Senate Committee report due to be tabled today will be influential in shaping the Government’s ultimate amendments to the Future of Financial Advice (FOFA) legislation.
The Senate Standing Committee on Economics is scheduled to hand down its report on the Government’s legislation amending FOFA today – the Corporations (Amending Future of Financial Advice) Bill 2014 today.
The make-up of the Senate Committee is such that there are expected to be differing views expressed by Government and Labor and Green senators, but Cormann earlier this month told a Senate Estimates Committee hearing that the report delivered by the committee would help him shape the manner I which he delivered the amendments and consequent regulatory changes.
Labor and Green Senators are expected to recommend against a number of the Government’s amendments including with respect to tidying up the best interests test, opt-in and grandfathering.
Cormann announced soon after taking responsibility for the financial services portfolio following the standing down of Assistant Treasurer, Senator Arthur Sinodinos, that he was pausing the FOFA legislative amendments to allow time for further consultation.
The Government’s position with respect to its changes to the best interests element of FOFA were recently strengthened by the findings of the ABC’s Fact Checking Unit which effectively dismissed Labor Party and industry super funds claims that they would undermine consumer protections.
