The Association of Financial Advisers (AFA) has called on the Government to produce independent evidence which demonstrates the benefits of the proposed Future of Financial Advice (FoFA) reforms.
At an AFA function this month, Minister Bill Shorten told advisers he was “not convinced” that opt-in would increase the cost of advice. In contrast, the results of a recent riskinfo poll found that 86% of advisers believe opt-in will add significant extra cost to business.
Minister Shorten also said he was unconvinced by arguments that the ban on commissions for insurance inside superannuation would exacerbate Australia’s underinsurance problem.
In response, the AFA has issued a statement calling for the Government to provide its own evidence on the impact of FoFA.
Mr Shorten said we haven’t convinced him yet – well, he hasn’t convinced us either
“When this Government came to power what it promised Australians was evidence-based policy decisions,” said Brad Fox, AFA President.
“Where is the evidence that opt-in and a ban on commissions within super address the problems Mr Shorten identified? Where is the rigour? The Government has not modelled a case for how they will benefit consumers. Mr Shorten said we haven’t convinced him yet – well, he hasn’t convinced us either.”
AFA CEO, Richard Klipin, added that the AFA welcomed the Minister’s willingness to continue to engage in debate with stakeholders.
“AFA members would like to be part of a sensible solution that creates a constructive pathway to change – in fact, their livelihoods depend on it,” he said. “Our door is open to work with the Government to build a consensus for reform.”
