Government placed on notice to answer FOFA questions
The Federal Opposition has placed a series of questions on notice in the Senate aimed at determining the true costs and impacts of the Government's Future of Financial Advice (FOFA) legislation.
The questions on notice have been filed by Tasmanian Liberal Senator David Bushby and go to the heart of a number of the issues raised by groups such as the Financial Planning Association and the Association of Financial Advisers.
The questions, directed to the Treasurer, Wayne Swan, have also been asked amid complaints that the Government's legislation has never been subjected to a full economic impact analysis.
Foremost among the questions is the number of new and existing financial planning clients likely to be affected by the FOFA changes and whether a financial benefit analysis can be provided covering the impact of the legislation on clients and financial planners.
Senator Bushby's questions have also sought an analysis of the current state of competition in the financial advice industry and whether the FOFA changes will "erect additional barriers to entry for new financial planning businesses and superannuation funds".
He has also questioned whether the Treasury has looked at the competition implications flowing from the changes and asked whether the matter has been referred to competition experts.
Bushby's questions also query whether the Government will allow the financial planning industry appropriate time to transition to the new arrangements, and whether additional costs are likely to be imposed by the Government's failure to align the MySuper and FOFA changes.
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
