Senator Mathias Cormann has reiterated the Coalition’s unequivocal commitment to remove opt-in from the Future of Financial Advice (FoFA) reform legislation if it wins power at the next election.
Speaking at an Association of Financial Advisers (AFA) lunch in Sydney last week, the Shadow Minister for Financial Services and Superannuation said that the Coalition would head into the next Federal election with a strong financial services policy.
“What I would like to confirm unequivocally here today is that those 16 recommendations which Coalition members and Senators made from the PJC enquiry will be Coalition policy going forward into the next election,” he said.
The Senator highlighted opt-in, clarification around scaled advice and the streamlining of fee disclosure requirements as some of the areas that would be improved if the Coalition regained power.
“The Coalition understands that financial advisers and financial service professionals provide a very important service… You do deal with other people’s money, so it is important to have an appropriately robust regulatory framework in place. But of course you have to make sure you have a regulatory framework … that strikes the right balance and still ensures that access to high quality financial advice remains available, remains affordable.
Not everything is wrong with FoFA
“Not everything is wrong with FoFA. That is of course the very sensible and responsible position that the AFA has adopted as well.
“The Coalition has worked very closely and very well with the AFA and the Financial Services Council in developing a nuanced and responsible policy position when it comes to FoFA.
“The problem with FoFA is that the bad bits are really bad,” Senator Cormann said.
He also thanked the AFA, and in particular President Brad Fox, CEO Richard Klipin and Political Advisor Kerry Chikarovski, for standing strong on good public policy in the financial services space.
Senator Cormann is scheduled to join the AFA on its national roadshow in July, where the Association will also showcase its new Principals of Practice.
