Delay FOFA implementation, says AFA
The only winners from the Government's Future of Financial Advice (FOFA) changes will be industry funds and the big end of town, according to Association of Financial Advisers (AFA) chief executive, Richard Klipin.
At the same time, the AFA has called on the Government to delay the implementation of FOFA beyond 1 July, next year.
Klipin has pointed to the proposed FOFA regime as undermining the robust, healthy and vibrant independent sector, with greater consolidation spelling fewer choices for Australian consumers.
"The Government's agenda is now on show for all to see, and the Government needs to provide evidence and modelling to back up its claims that FOFA will provide a growth strategy for the industry," he said.
Klipin said while the changes were purportedly designed to protect consumers, the reality was the only winners would be industry funds and the big end of town.
AFA president Brad Fox also pointed to problems flowing from the prolonged period of regulatory uncertainty surrounding the FOFA changes and manner in which they were negatively impacting business flows, practice profitability and longer-term planning.
Fox also strongly criticised the Government's decision to release the draft FOA legislation in two stages, saying the Government had delivered its first tranche late, but had shown no signs of moving implementation beyond 1 July, next year.
"If advisers are expected to make significant changes to the way they operate, the Government must defer the implementation date," he said.
AUTHOR
Mike Taylor
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
