Following is a summary of the key industry bodies\u2019 responses to the proposed changes\u2026<\/p>\n
AFA<\/strong><\/p>\n AFA CEO, Brad Fox<\/strong>, described the changes as \u201c\u2026 essential to achieving the outcome of great advice for more Australians\u201d.<\/p>\n \u201cFrom a regulatory perspective, the initial release of FoFA was heavy-handed and failed to balance the benefit to consumers with the additional regulatory cost,\u201d Mr Fox said.<\/p>\n \u201cThese sensible amendments from the Coalition eliminate unnecessary red tape and costs and will help thousands more Australians receive the benefits of life-changing financial advice backed by the safety-net of strong regulation that enforces client best interests.<\/p>\n \u201cWe are therefore very pleased that our consultation with the Coalition over the last four years has helped shape these prudent amendments,\u201d he said.<\/p>\n Mr Fox also said the AFA appreciated that the Government had reaffirmed they will deal with the FoFA changes in accordance with their pre-election promises, especially given the urgency of issues such as grandfathering of conflicted remuneration when changing licensees.<\/p>\n \u201cWe will be seeking additional clarification about the use of regulation and legislation to effect these changes and this will give us a clear indication of the time frames we can expect to achieve the improvements.<\/p>\n \u201cAfter several difficult years, where financial advisers and planners have had uncertainty and agenda-driven policy forced upon them, this is a positive note upon which to end 2013,\u201d he said.<\/p>\n FPA<\/strong><\/p>\n The Financial Planning Association also congratulated the Government on its proposal, specifically highlighting the following as \u2018welcome changes\u2019:<\/p>\n FPA CEO, Mark Rantall<\/strong>, said: \u201cThese changes are in line with the FPA\u2019s advocacy initiatives from the outset of FoFA and are a positive step in making the reforms more practical for financial planners.\u201d<\/p>\n However, the FPA said it was still keen to see further changes to the FDS requirements, to streamline the process. In addition, Mr Rantall said the Association would continue to push for the enshrinement of the terms \u2018financial planner\/adviser\u2019 following the lapsing of this Bill due to the 2013 Federal Election.<\/p>\n \u201cThe FoFA reforms should not be seen in isolation but as part of a whole effort by the Australian financial planning sector to continue the journey towards becoming a distinct and respected profession. Enshrinement of the term financial planner would further enhance the consumer benefits of FoFA and achieving this milestone will be another key focus for us in the months to come,\u201d Mr Rantall said.<\/p>\n FSC<\/strong><\/p>\n According to the Financial Services Council, the refinements to the FoFA reforms will mean advisers are able to provide consumers with affordable advice that is tailored specifically to their needs.<\/p>\n \u201cThe FoFA refinements announced by the Assistant Treasurer are sensible deregulation measures which are consistent with objectives to make advice more accessible and affordable for consumers,\u201d said newly-installed FSC Director of Policy and Global Markets, Andrew Bragg<\/strong>.<\/p>\n Mr Bragg said the changes to the scaled advice and best interests duty provisions would allow financial advisers to scale their advice based on the instructions of their clients.<\/p>\n \u201cThis is a welcome reprieve for consumers and for the advice industry,\u201d Mr Bragg said.<\/p>\n \u201cIt means consumers can now instruct advisers on exactly the advice they desire, in contrast to the previous scenario where advisers were required to provide a comprehensive financial plan regardless of whether a client wanted it.\u201d<\/p>\n ISA<\/strong><\/p>\n Despite having announced an end to its \u2018war of words\u2019 with the FSC in August 2013, Industry Super Australia (formerly the Industry Super Network) opposed the view of the vast majority of financial services stakeholders, arguing the FoFA legislation should not be changed.<\/p>\n ISA CEO, David Whitely<\/strong>, said the FoFA laws deserved a chance, and that the changes proposed by the Coalition Government would re-open the debate about whether a financial planner is an impartial adviser or a sales representative, ultimately reducing confidence in financial advice.<\/p>\n \u201cISA urges the Government to stick to the sensible centre or risk further scandals in the financial planning industry,\u201d Mr Whitely said.<\/p>\n \u201cThe FoFA laws were the result of years of debate and negotiation. A number of concessions were made by the previous Labor Government to the banks and financial planners before the current laws were passed in 2012.\u201d<\/p>\n Instead of the changes proposed by Senator Sinodinos, Mr Whitely called for the FoFA legislation to be reviewed as part of the 2014 Financial System Inquiry (see: Dunn Joins Financial System Inquiry<\/a>).<\/p>\n AIST<\/strong><\/p>\n The Australian Institute of Superannuation Trustees was also less than impressed with the proposed changes, warning they would make simple financial advice less accessible for super fund members.<\/p>\n AIST CEO, Tom Garcia<\/strong>, said super funds were concerned the proposed changes to FoFA would restrict their ability to provide accessible financial advice to members through changes to the intra-fund provisions.<\/p>\n \u201cSuper funds have long recognised that access to financial advice is a key tool in helping members build their super and improve their retirement outcomes, \u201c Mr Garcia said. \u201cWe think it is very important that the bulk of the population – who do not currently see a financial adviser \u2013 are able to access straightforward financial advice through their super fund.\u201d<\/p>\n Mr Garcia said the existing FoFA laws were an important consumer protection measure that should be given a chance to be properly implemented before any review.<\/p>\n Mr Garcia said AIST supported calls to have the FoFA laws reviewed as part of the 2014 Financial Systems Inquiry.<\/p>\n![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2014\/01\/Brad-Fox-B-2.jpg\")
<\/a>We are very pleased that our consultation with the Coalition over the last four years has helped shape these prudent amendments<\/h6>\n
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![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2014\/01\/Mark-Rantall-2.jpg\")
<\/a>![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2014\/01\/David-Whiteley1.jpg\")
<\/a>…the existing FoFA laws should be given a chance to be properly implemented<\/h6>\n