AFA stresses carve-out removal amid cabinet change
The Association of Financial Advisers (AFA) has reiterated its calls to remove any "carve-out" advantages for direct insurance sales and salaried channels, even as it welcomed the Government's decision to leave Kelly O'Dwyer with the financial services portfolio.
In his announcement about the new cabinet composition yesterday, Prime Minister Malcolm Turnbull said Kelly O'Dwyer would remain in her current portfolio with a new name: she was now Minister for Revenue and Financial Services, rather than Assistant Treasurer.
The AFA its pursuit of removing the carve-out aimed to apply remuneration reforms at the same level and same time regardless of distribution channel, or whether an adviser worked at an institution or in a small business giving general or personal financial advice.
AFA chief executive, Brad Fox, said: "An equitable, sustainable and workable solution is required in this important area of reform so that the benefits of personal financial advice can continue to be competitively accessed by Australians".
"We believe this can be achieved with some guidance."
Fox also said O'Dwyer's reappointment would accelerate progress on professional standards and other reforms and thus increase trust at a quicker speed in the financial advice profession.
The AFA said it was eager to continue negotiations on life insurance reforms, professional standards reforms, superannuation, robo-advice controls, and a review of statement of advice documents.
The Financial Services Council (FSC) also welcomed the re-appointment of O'Dwyer, as well as that of Scott Morrison as Treasurer, and Steven Ciobo as Minister for Trade, Tourism and Investment.
The FSC said re-appointing Ciobo would provide continuity in the implementation of the North Asian free trade agreements.
FSC chief executive, Sally Loane reiterated calls to prioritise and implement a range of policies, including the Life Insurance Reform Bill, introducing legislation in superannuation to promote choice and competition and improve governance, and developing a lower withholding tax regime for foreign investors to support Australian investment managers looking for growth and new markets.
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