The Association of Financial Advisers (AFA) has sent a letter outlining its five major concerns relating to the proposed Future of Financial Advice (FOFA) legislation to the independents, relevant frontbenchers and members of both Houses of Parliament.
The industry body has formed the view that independent members of Parliament in particular will be vital to amending the proposed reforms.
Addressing both members and senators, the correspondence claims FoFA is the biggest change to the industry in a generation and points to the Parliamentary Joint Committee’s (PJC) “dissenting report” as reason for a rethink.
“We are seeking your support to amend the legislation that includes elements that are anti-consumer, anti-adviser and anti-small business,” it states.
“Minister Shorten has stated on a number of occasions that FoFA is a growth strategy for the financial advice industry and also that there is broad industry support for FoFA.
“In fact the financial services industry has many concerns with the current draft of this legislation, much of which has been recognised and addressed in the Coalition’s dissenting report.”
AFA CEO Richard Klipin said the PJC majority report on FoFA contained a number of misunderstandings in relation to evidence from the industry.
“It was disappointing to see how they have ignored consistent feedback from the industry on the significant issues with this legislation,” he said, adding that the Government’s FoFA position appears to have hardened.
Klipin said the AFA visited Canberra last week and had many constructive high-level discussions.
“We met with the key advisers of independents, we had forthright and honest dialogue with the Greens and the Government and we continue to have good ongoing dialogue with the Coalition,” he said.
“After the release of the PJC report and as a result of our discussions, we have formed the opinion that the independents will be key in amending FoFA.”
