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.
"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.
Recommended for you
ASIC has released the results of the latest financial adviser exam, held in November 2025.
Winners have been announced for this year's ifa Excellence Awards, hosted by Money Management's sister brand ifa.
Adviser exits have reported their biggest loss since June this week, according to Padua Wealth Data, kicking off what is set to be a difficult December for the industry.
Financial advisers often find themselves taking on the dual role of adviser and business owner but a managing director has suggested this leads only to subpar outcomes.
