FOFA brings lingering uncertainty

It is likely to be at least another nine months before financial planners move beyond the uncertainties created by the Future of Financial Advice (FOFA) changes, according to the Association of Financial Advisers' (AFA) Brad Fox.

Having nearly completed two weeks of AFA roadshows, Fox confirmed that while most advisers had done their best to prepare for the new FOFA regime, there remained a fair bit of trepidation amongst those with more complex businesses about whether they had done enough.

He said newer, generally younger, entrants to the financial planning industry were less affected and less concerned because their businesses were focused on fee for service, with more nervousness being felt by older planners significantly impacted by the grandfathering provisions.

Fox said he believed it could take at least another nine months before planners would feel they had moved beyond uncertainty and fully understood the implications of FOFA on their businesses.

"These advisers are dealing with a period of significant change and their best interests are served by obtaining all the relevant information to give them clarity," he said.

While the FOFA legislation has now been passed by the Parliament, the Shadow Assistant Treasurer, Senator Mathias Cormann, has reaffirmed that a Coalition Government would fulfil its commitment to implement amendments, including with respect to opt-in, best interests and fee disclosure statements.