FPA calls on Govt for FSRA assistance
The Financial Planning Association (FPA) has called on the Government to offer incentives and assistance to financial planners in transitioning their businesses over into the new Financial Services Reform legislation.
Small dealer groups are facing the greatest burden in making the transition to the Financial Services Reform Act, according to a survey of members of the FPA.
The survey found that financial planners take an average of two weeks to complete the electronic license required by the Australian Securities and Investments Commission (ASIC), while costing them more than $8000.
A number of respondents criticised the arrangements for being designed as a “one size fits all” approach. According to the FPA, there was a perception that there was no difference between the transition requirements for small, medium and large dealer groups.
The five most common reasons given by respondents who had not yet started the process were: planners still waiting to see experiences of other planners before complying; planners ‘waiting for the dust to settle’; a perceived lack of flexibility in the processing of applications by ASIC; uncertainty about aspects of the legislation; and planners believing there was a need to evaluate current systems and processes before applying.
“Incentives and targeted assistance need to be provided so that market participants transition early avoiding a rush of applications at the end of the transition period,” FPA chief executive Ken Breakspear says.
“The FPA would like to see the government offer assistance to businesses transitioning into FSR as they did for businesses moving into the GST regime.”
As such the FPA believes that $10 million in assistance would markedly increase the numbers of small to medium practices make the transition to the new regime at an earlier stage.
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