AFA calls for unified advice rules
The Association of Financial Advisers (AFA) has reiterated its calls for a level playing field for all who provide financial advice to retail clients – including the industry super funds.
AFA national president Brad Fox (pictured) noted the industry super funds had a class order exemption from the obligation to know the financial situation of the member they were advising.
“We believe that any rules and obligations that apply to financial advisers operating outside the industry fund environment should apply equally to those operating within it,” Fox said.
Fox’s comments came amid the launch of the AFA’s Future of Financial Advice (FOFA) pack for its members, which the association said would help advisers understand the timeframes and impacts of the proposed reforms.
The eight-page pack contains descriptions of different Government proposals, such as fiduciary duty, intra-fund advice, opt-in, volume payments and commission – along with the outline of the AFA’s position on these issues.
Fox said the AFA had firmly held the line against various proposed reforms, such as the banning of commissions on risk products and opt-in.
“We firmly believe that any reforms that make it more difficult to access advice in relation to building and protecting the wealth of everyday Australians make for bad policy,” Fox said.
The pack also contains the legislative timetable, outlining details of when the FOFA legislation will be released, tabled and implemented.
The AFA chief executive, Richard Klipin, said now was the time for members to reposition their businesses and be “FOFA-ready”.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
