Clicky

Frydenberg signals co-regulation for planning industry

The Federal Government has signalled that after some bipartisan settling of remaining technical issues the Future of Financial Advice (FOFA) regime will be given time to work and that it will now be giving substantial support to the recommendations of the Parliamentary Joint Committtee, including the possibility of a national exam regime and co-regulation.

The Government's position has been outlined by the Assisant Treasurer, Josh Frydenberg, in a column published in the Australian Financial Review in which he said that with many of the major players in the financial advice industry having already moved independently and voluntarily to boost professional standards and enhance transparency, it was now time to capitalise on industry momentum to put in place an enduring co-regulatory framework.

However the minister said there were still many questions that remained to be answered including how to differentiate between advisers providing advice on Tier 1 and Tier 2 products and about transitional arrangements that should apply.

Related News:

"However I am confident that extensive consultation can resolve outstanding issues to help land an agreed position," he said.

Frydenberg said that one thing was certain - "we do not want to see more bureaucracy that simply puts the cost of advice out of reach."

"But if we can work with the industry to raise standards and help to build a recognised profession then that is a good thing," he said.




Related Content

Govt reinforces intention on MySuper advice fees

The Federal Government has reinforced that it intends to legislate to prohibit the deduction of advice fees from MySuper accounts.The Government’s i...Read more

Australians face uncertain financial future

Almost one third of Australians face an uncertain financial future, a factor which is holding back their happiness in life, according to the study, ai...Read more

Ending grandfathering has positives for some

Publicly-listed platform provider, HUB24 has pointed to some positives from the Royal Commission and the impending removal of grandfathered commission...Read more

Author

Comments

Add new comment