Risk specialist dealer group, Synchron, has called on its advisers to lobby hard against the proposed Future of Financial Advice (FoFA) reforms, saying they pander to the union superannuation funds movement.
In a statement issued last week, Synchron Director, Don Trapnell, said advisers were being unfairly targeted by the proposed reforms.
“Adviser fines in the vicinity of $200,000, lifetime bans, criminal penalties, bans on commissions on life insurance products inside superannuation, bans on corporate sponsorship of overseas adviser conferences, all serve to disadvantage financial advisers operating outside union superannuation funds,” Mr Trapnell said.
“In our opinion, it’s unfair, it’s undemocratic and it plays to the union superannuation funds’ agenda.”
It’s unfair, it’s undemocratic and it plays to the union superannuation funds’ agenda
He used the proposed ban on sponsorship of overseas conferences to highlight the bias.
In its April 2011 FoFA announcement, the Government said that while its ban on ‘soft dollar’ payments would not extend to any benefit provided for the purposes of professional development, it added the proviso that further details of the ban will be subject to implementation consultation. According to the Government, this could include a condition that the development take place within Australia.
“As it stands, any such proposed ban is only likely to affect AFSL holders and their authorised representatives,” Mr Trapnell said. “It probably will not, for example, affect delegates attending the Australian Institute of Superannuation Trustees’ (AIST) Global Dialogue in London next year.
“The logos of more than 20 industry partners appear on the… AIST website. However, whether or not these, or other industry partners, sponsor the Global Dialogue is opaque – just as the use of the fees members pay to industry super funds is opaque,” he added.
Mr Trapnell urged advisers to take action against what Synchron believes is an ongoing and concerted attack on the financial advice industry. “Advisers must stand up against Government attempts to dictate how ordinary Australians go about their business,” he said.
“They need to talk to their local Members of Parliament – and any other Federal politician who will listen – about the devastating impact FOFA will have on them, their clients, their businesses and the industry.”
