As the Future of Financial Advice (FoFA) debate heats up with the PJC hearings in Sydney this week , we want to know where you stand today. Our latest poll question asks:
Are you more concerned with the nature of the proposed FoFA reforms or with the timing of their implementation?
Over the last year, many advisers have told riskinfo they have no significant issues with any of the proposed FoFA reforms, while an equal number have said they have very deep concerns about the impact on their practice of areas such as the opt-in process and the potential cost of annual fee disclosure.
Where do you stand? As the FoFA deadlines draw closer, accompanied by strong lobbying to delay its implementation, are you generally ok with the reforms themselves, but have concerns about being ready in time? Are you ok with both content and timing? Or do you continue to oppose some of the proposed measures for the detrimental impact you believe they may have on your ability to deliver quality advice to your clients? What is keeping you awake at night?
Tell us what you think…
The people the idealogues at Treasury forgot about ( riskwriters ) are nothing if not adaptable. We will survive, but will we stay.
The question is, will the insurers stay as they are. For example, when will there be a truly discounted premium when no commission is taken and the adviser opts for a fee.The current offer is a joke-a 20% discount on premium is all thats available.
Without motivated advisers holding relationships with clients, who will put pressure on the premiums of legacy risk products held on the books of some insurers following amalgamations.
i have been told there will be litle to no action on the Storm Financial case as ‘the S.O.As. were perfect!It seems to me that if soo many people wrer hurt by the actions of the advisorsas to draw Asic’s attention the advice must have been extreem at least.
How is FOFA going to help in a case like that?
How is banning commissions and calling all commission payments conflicted as though they were an illeagal practice going to stop that?
I read in todays paper that Asics shadow shopping results were released recently,and from this paper dated 24-1-2012are Asics comments of ‘disappointingly high’ poor levels of advice. Of all the plans that must have been done in the period leading up to the ‘shop’and it is not clear how it was done the sample was 64 out of what!How many? of which only two plans were classed as good.33%were poor 61% were adequate. Apparently we failed to talk to our client about what tthey could realistically fund and we has woefully inadequate projections and poor technical assumptions.
HOW WILL FOFA CHANGE ANY OF THAT?
i CAN REMEMBER A TIME IN THE NINETIES when the first on these movs came into action requiring a customer advice record when it was no longer leagal to provide Superanuation projections.
We lived through that and we will live through Shorten ,HE is ONLY a polly ( parrotting public service ideas) they come and go, he will be lucking to surviv the election. We should run a robbers dog against him JG
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