Advisers Believe FoFA Wind-Back Only Matter of Time

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Do you believe that the Coalition will deliver on its promise to fix elements of the FoFA reforms?
  • Yes (68%)
  • Not sure (21%)
  • No (10%)

The majority of our readers believe there will be further legislative change to the financial advice industry over the next twelve months, following the Coalition’s resounding election win last weekend.

Two thirds of respondents to our latest poll said they were confident the Coalition would deliver on its promise to wind back elements of the Future of Financial Advice (FoFA) reforms. If the policy points flagged by the Coalition prior to the election are enacted, financial advisers can expect:

  • Changes to the annual fee disclosure statement requirements
  • A revised best interests duty
  • Tweaks to the ban on commissions for risk insurance inside superannuation

Industry associations are also positive about the future of the sector under a Coalition Government. Association of Financial Advisers (AFA) CEO, Brad Fox, said he was looking forward to working with the Coalition to iron out some of the problematic consequences of FoFA.

“The AFA is supportive of the changes to the FoFA reforms as announced by Senator Mathias Cormann and the Coalition prior to the election and will work closely with the new Government as these changes are implemented.”

Mark Rantall, CEO of the Financial Planning Association (FPA) echoed these comments: “We acknowledge that it will take some time to settle into office and face into the reforms that need to be instigated. In time, we look forward to working with the new Government particularly helping them with changes to both regulations and legislation for the removal of opt-In provisions, simplification of fee disclosure statements, more flexibility on allowing for commissions on insurance inside superannuation and clarity on best interest duty to allow for scaled advice.”

At the time of publishing, new Prime Minister, Tony Abbott, had yet to announce his new Ministry, leaving a question mark over whether Senator Cormann will continue to have carriage of the financial services portfolio.

We are still interested in hearing your thoughts on this topic, and our poll remains open for another week…

 



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