AFA calls on Govt for overhaul of FSRB
The Association of Financial Advisers (AFA) has hit out at the delay of the Financial Services Reform Bill (FSRB), saying the Federal Government should re-examine existing legislation.
Outgoing AFA president John Hibberd says the Agents and Brokers Act has worked well and should be considered during the impasse over FSRB.
"Our view is the Act worked well for three sides: product manufacturers, consumers and advisers. There is a system that works and we would like to see it expanded," Hibberd says.
Life agents have not been comfortable with several facets of FSRB and agree with a single regulatory body, but not all the changes under the new corporations law, Hibberd says.
The proposed model makes the regulatory policies for life agents increasingly complex, according to Hibberd, as life advisers will need to shift from agent contracts to proper authority contracts in order to continue distributing products.
At the same time, the moving of liability to the dealer and new compliance measures will increase the cost of business by one-third, Hibberd says.
Despite the setback, the Financial Planning Association (FPA) has remained bullish on the legislation, with public policy manager Con Hristodoulidis saying the association will continue to push for the FSRB.
The FPA has planned a meeting with the of Minister for Financial Services Joe Hockey and hopes to "gain an idea of what the Minister is thinking, then reorganise from there," Hristodoulidis says.
He adds that the FPA will also continue to support Interim Policy Statement (IPS) 146, as will the Australian Securities and Investments Commission (ASIC).
ASIC national director of financial services and regulation Ian Johnston says it is urging those in the securities and life industries to go ahead with IPS146.
"There is a different legislative hook for the other practitioners without FSRB in place, but we do see IPS146 as being able to be decoupled from the FSRB if need be."
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