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<\/a>Responding to recent commentary about the Future of Financial Advice (FoFA) amendments which suggests the changes will reduce consumer protection, AFA CEO, Brad Fox<\/strong>, questioned whether such commentary was in the best interests of Australians.<\/p>\n \u201cWe have seen gross inaccuracies being reported as facts across a wide range of publications and media programs, so the question has to be asked: how are these actions, which undermine the confidence of Baby Boomers in personal financial advice, in the best interests of Australia?\u201d<\/p>\n Mr Fox was particularly critical of Industry Super Australia (ISA), which as recently as last week issued a statement saying it had received legal advice that the best interests duty changes were flawed (see: News in Brief – ISA Continues FoFA War of Words<\/a>).<\/p>\n \u201cWhat I don\u2019t understand is why, when transparency is so important to the reform of financial services, the ISA, which is the modern representation of the union super fund movement and the loudest critic of the amendments, has not made its submission to the Government on the FoFA amendments publicly available,\u201d Mr Fox said.<\/p>\n At the time of publishing, the ISA had not made their FoFA submission available to the public.<\/p>\n \u201cIt seems particularly inconsistent with ISA\u2019s calls for transparency, and you have to ask why it has not been released publicly,” Mr Fox said. “We think it is reasonable to expect full transparency on these types of issues or consumers could question whether they can trust the integrity of the agenda.<\/p>\n \u201cPrime time television commercials, newspaper advertising and sponsorship of sporting events and organisations such as AFL and NRL clubs are an enormous expense paid for from members\u2019 superannuation money. This makes them a powerful lobby group and raises questions about whether their lobbying actions are consistent with the objective for more Australians to get quality personal financial advice and thus achieve a comfortable retirement. As a nation, we need more Australians better prepared for retirement, not less.\u201d<\/p>\n Mr Fox believes the FoFA amendments will create the world\u2019s strongest legislated requirement for financial advisers to act in the best interests of their clients.<\/p>\n \u201cAs law, the amendments will give clarity so that every financial advice client, along with anyone else who wants to scrutinise the advice given to the client, will be clear on whether the adviser has or has not met this robust and comprehensive duty to act in the client\u2019s best interests. The Law Council of Australia has publicly supported the amendment to the best interests duty. It will give consumers increased confidence to trust the financial advice they receive.\u201d<\/p>\n Without the amendments, Mr Fox said the best interests duty would need to be tested in the courts. \u201cThe best interests duty will be left with a cloud hanging over it for years and that cloud will not be cleared until court cases remove the ambiguity. The sensible thing to do is to fix the legislation now so that Baby Boomers nearing retirement can seek the financial advice they need with certainty.\u201d<\/p>\n The AFA\u2019s comments come on the eve of the introduction of the FoFA reform legislation into Parliament (see: Corruption Claims Threaten to Overshadow FoFA Amendments<\/a>).<\/p>\nAs a nation, we need more Australians better prepared for retirement, not less<\/h6>\n
…fix the legislation now so that baby boomers nearing retirement can seek the financial advice they need<\/h6>\n