ISA misrepresented bankers on FOFA reforms

Claims that the major banks are seeking the reintroduction sales commissions for financial advices and compulsory super, are misleading the Australian Bankers' Association claims.

ABA acting chief executive, Diane Tate, hit out at the accusations made by Industry Super Australia chief executive, David Whiteley, at a Senate Economics Committee hearing yesterday.

Tate said the banking industry strongly supported the original policy intent of the Future of Financial Advice (FOFA) reforms, including the best interests duty and the ban on conflicted payments.

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"The FOFA provisions introduced important consumer protections," she said.

"We are only seeking technical amendments which will clarify and simplify the operation of the law, while maintaining these new consumer protections."

"The ABA is not seeking changes to enable banks to charge or re-introduce commissions. The ABA is not seeking changes to dilute the best interests duty. Any claim to suggest otherwise is simply false.

"FOFA was designed to improve the quality of personal advice from financial advisers. Financial advisers, whether they work for a bank, credit union, industry super fund or any other type of financial institution will need to meet the best interest duty if they provide personal advice to retail clients on investment products. The banking industry fully supports the best interest duty."

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