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.
"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.