FSC to Parliament: Pass FoFA Now

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The Financial Services Council (FSC) has called on the Parliament to pass the Future of Financial Advice (FoFA) legislation now, and says it will not push for a delayed commencement date but expects a 12 month transition period.

Speaking at an industry function in Sydney, FSC CEO, John Brogden, said that while the Council was still actively lobbying the Government on some key areas of reform, it was not trying to stop the legislation, or slow it down, but did expect the Government to provide the industry with a 12 month grace period.

“The best guess is that the legislation will be through the Parliament in May, to commence on 1 July (2012).  It’s simply inconceivable that we could be ready in such a time.  So we take a view that (the Parliament should) pass the legislation now, but phase it in…

“Even if the systems changes were easy, which they’re not, just training a whole adviser workforce on how to implement Best Interest duty can’t be done in a matter of weeks. It’s a longer term thing.

“We’re at a point where we just want the legislation through, so we can start preparing for it to be implemented,” he added.

Mr Brogden said he was increasingly confident that the Government will allow a 12 month transition, in recognition of the significant investment and training required to implement the reforms.

“There are two approaches (to transition) that the Government is discussing with industry, quite openly.  The first is a hybrid solution: some starts in 2012, some starts in 2013.  The other is starting everything in 2012, (with) the Government encouraging the industry to be early adopters, but then the drop dead implementation date is 2013.”

The FoFA Bills are currently before the Parliamentary Joint Committee for Corporations and Financial Services, which is due to deliver its report on 29 February. The Bills must then pass through the House of Representatives before moving to the Senate, where the Labor party does not hold a majority.



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6 COMMENTS

  1. What a silly, self serving statement to make by the FSC, kind of like “Well, if we’re gonna have war, let’s start the bombing now because we think we’re prepared for it”. Just because one self interested group thinks that they are ready, the impact across the Nation as a whole has yet to be fully taken into account and definitely not quantified or qualified in any meaningful way with the ‘guidelines’ hazy and completely obscured at best. John, go home and use your mouth for something more useful than shooting off – perhaps another baloney sandwhich would be appropriate?

  2. it may be ok for large Industry players to say they can be ready, howe3ver what about the poor individual advisers that are runniing small businesses, To try and have systems even at small measure in place by 1 July 2012 is not acceptable. as for Brogdens statement at a 1.7.13 date , Well that will be a sad day for a Australia and a win for teh Union run Industry Super movement in deed

  3. I can’t believe that John Brogdan actually said this. There is still not agreement on the terms of the legislation, and the Government by it’s own admission has not satisfied it’s own standards in the process of developing the legislation. Obviously the ISN and the FSC have the most to gain by damaging the planning industry. It’s a shame they are so self serving.

  4. The FSC is an interesting group. Their objectives per website are as below. As their mouthpiece John Brogden would of course take this attitude. In many respects the new reforms play straight into the hands of many of this group. The big players can afford to sponsor FSC and full time lobbyists in Canberra. If they had their way would we all become their full time employees (zombies??). They still get the full benefit of FUM we provide the hard yards and the whipping boys. Perhaps, looking at utube, Rudd and successors like people to shout at and blame!!

    Our Objectives
    The members of the Financial Services Council – Australia’s leading wealth managers – exist to achieve three outcomes for Australians:

    1. To increase their wealth;

    2. To protect their lives; and

    3. To provide them with a comfortable retirement.

  5. In case it is not obvious. The FSC, The Government and The Unions dont want “independent advice” so dont expect anything more than token political giveaways. FPA has been dominated by the Institutions and have only been concerned about pushing their own barrow. Get out before it is too late to sell

  6. How dare he? Planners built him and the FSC!!

    Now he sells us up the river. What impact does opt I have on FSC?

    You don’t represent planners. I bet it would be a different story if Fofa called for full disclosure of shelf space and mandate rebates!

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