- Yes (68%)
- Not sure (21%)
- No (10%)
Our latest poll centres on whether advisers believe a Coalition Government would follow through on its promise to wind back elements of the FoFA reforms.
Shadow Minister for Financial Services, Senator Mathias Cormann, has reiterated on numerous occasions over the past 12 months that the Coalition has a plan to fix what it sees as the problems associated with the FoFA reforms.
Specifically, the Coalition has confirmed it will:
- Completely remove the opt-in requirements
- Simplify and streamline the annual fee disclosure requirements
- Improve the best interests duty
- Provide certainty around the provision and availability of scaled advice
- Refine the ban of commissions on risk insurance inside superannuation
Speaking via video message at last year’s Association of Financial Advisers’ National Conference, Senator Cormann said the Coalition had already drafted the necessary documentation to enact the changes.
But do you think the Coalition will deliver these reforms now that they have been elected? Or are there other factors that may distract the Coalition from delivering on its promise?
For example, Shadow Treasurer, Joe Hockey, has flagged his intention to undertake a ‘Son of Wallis’ review into the banking and financial services sector. If such a review were to take place, would the Coalition delay making any changes to the financial services system until the results were tabled?
Mr Hockey and Senator Cormann have also pledged to restore confidence in superannuation by delivering greater certainty and stability for the superannuation industry. While not directly related to the FoFA reforms, the Senator may determine that the wider financial services industry needs time to stabilise following the significant amount of change handed down over the last twelve months and could recommend the Coalition hold off implementing any further change to the industry to allow it to bed-down the existing reforms.
Of course, there are no guarantees that Senator Cormann will retain carriage of the Financial Services portfolio after the election. Tony Abbott may decide to re-assign Senator Cormann to an alternative portfolio, replacing him with a new Minister who may require some time to get up to speed with the issues facing financial services.
So, do you think the Coalition will deliver on its promise to roll-back FoFA? We look forward to hearing your thoughts…
Having heard Senator Cormann speak on many occasions and also spoken with him personally I have the greatest confidence that he will follow through on the Coalition’s promises. In my opinion Senator Cormann has been one of the outstanding performers among the Coalition’s spoke persons, he not only has a remarkable capacity to deliver his message in a clear and concise way, but even more importantly when you speak to him, he listens.
My greatest reservation is that he may be shifted to another portfolio if the Coalition wins government, That would be a setback for our industry, because I believe he is the one person who could quickly and effectively unravel the damage done by the years of “Shortenism’!
Something has to be done.
Fofa is a disaster!
FOFA cannot continue in its present form let alone the intended changes that have added unbelievable additional work and stress on advisors who in general all have the best intentions toward their clients, if they did not they would not have any !
I trust that the opt in debarcle is sidelined at the least as this is nothing more than more bashing and bullying from a Government that has lost its way and is being led by the industry funds and those that benefit from them Low or No fees what a load of “crap”
We should hope that Senator Cormann will continue to be responsible for Financial Services.
He has demonstrated a deep and broad knowledge of the industry, has demonstrated a curious and open-mind in developing a position that serves the best interests of consumers whilst also being pragmatic and commercial.
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