November 13, 2012
Opposition leader Tony Abbott has confirmed the Coalition will implement changes to the Future of Financial Advice (FoFA) reforms as a priority, if it is returned to power at the next Federal Election.
Mr Abott has issued ‘The Coalition’s Deregulation Reform Discussion Paper’, which lists the immediate policy measures the Coalition will implement to reduce the “red tape burden”. Included on the list is amendments to the FoFA package. The list of priorities also includes the repeal of the Government’s Carbon and Minerals Resource Rent taxes, and the easing of the superannuation administration burden on small businesses.
“All modern economies need regulation, but excessive regulation creates greater costs than benefits and discourages investment and the willingness to ‘have-a-go’,” Mr Abbott said.
“Australia has been caught in the vice of over-regulation.”
Coalition Senator and Shadow Minister for Financial Services and Superannuation, Mathias Cormann, has previously outlined the Coalition’s 16-point plan for improving the current FoFA legislation. Speaking via video message at this year’s Association of Financial Advisers’ National Conference, Senator Cormann said the Coalition had already drafted the necessary documentation to enact the changes, which include the removal of the opt-in requirement, and clarification around the ban on commissions for life insurance inside super.
“Beyond fixing FoFA, what we would like to do is work with you in lead up to the next election, to identify opportunities on how we can further cut red tape in the financial services space,” Mr Cormann said.
The Coalition is now calling for submissions in response to its Discussion Paper, which can be viewed here.