The Coalition has called for amendments to Future of Financial Advice (FoFA) reforms while those lobbying for change believe next week’s vote is too close to call.
The contentious FoFA Bills are likely to be debated in the House of Representatives from Monday (March 19) with as many as 21 speakers scheduled to state their case to the parliament.
While those pushing for major changes to the draft legislation will have been heartened by the Government’s concession over the implementation of any changes, celebration has been tempered by the recommendations of the Senate Economics Committee’s FoFA report.
These effectively followed the same lines as Bernie Ripoll’s Parliamentary Joint Committee (PJC) by not specifically addressing any of the concerns raised by the industry or the Opposition.
The Financial Planning Association expressed disappointment in the recommendations outlined by the Senate Economics Committee (SEC).
“The original intent of FoFA was to improve transparency of, and access to, financial advice for all Australians. This is an effort that the FPA has consistently supported throughout all discussions with government and, while we have welcomed the opportunities to present our recommendations on behalf of our members and consumers, we believe the SEC has missed an opportunity to recommend improvements that would deliver on the consumer protections and benefits that FoFA was originally intended,” said FPA CEO Mark Rantall.
“It is disappointing that, while many industry representatives have spent considerable time throughout the inquiry recommending amendments to enable FoFA to meet consumer’s best interest, most of this insight has not been reflected in reports tabled to government.
“We hope that, while key industry recommendations have not been considered in the PJC or SEC reports, they are taken into account during the Government debate on FoFA in the coming days.”
The Opposition was quick to push for further concessions after welcoming what it called a Government back-down on the transition period.
“We have consistently said that the proposed start date of July 1, 2012 was not appropriate,” said Senator Mathias Cormann.
“Especially with legislation still not settled less than four months before the proposed start date with the Government still furiously drafting amendments to its own legislation.”
Cormann reiterated his view that the FoFA proposals in their current form would result in more red tape and increased costs for business and consumers while reducing choice and diversity across the financial services industry.
“Now that Bill Shorten has accepted the Coalition has been right all along on the commencement date, he should also accept our other 15 recommendations designed to fix the major flaws in his current proposals,” he said.
A proper regulatory assessment of the proposed changes, removal of the opt-in requirement, a redrafting of the best interests duty and the workability of scalable advice remain the main concerns for the Coalition.
If ever there was a politician who should be stopped in his tracks it is Shorten. The Labour party is in big trouble and if they continue with this dubious individual and a seemingly high proportion of similar individuals ( in regard to honesty, intellect and ability) then they have no hope at the next election.
Forget a 12 month delay. This abomination needs to be amended for the sake of the public who need more affordable advice, not more expensive advice. It’s not rocket science.