Frydenberg signals co-regulation for planning industry

financial-advice/financial-advice-industry/FOFA/financial-planning/federal-government/government/

19 February 2015
| By Mike |
image
image image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

4 days 5 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 5 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5