Key industry bodies respond to the government’s release of draft amendments to the Future of Financial Advice (FoFA) legislation, and a three-week consultation period.
FPA commends timely release of FoFA draft legislation
The Financial Planning Association (FPA) has welcomed the timely release of the draft amendments to FoFA for a three week period of consultation, as announced today by Assistant Treasurer, Arthur Sinodinos.
FPA CEO Mark Rantall said: “We are pleased that the Government has progressed with its promised changes to ensure a more workable FoFA framework for financial planners and their clients. We will now carefully consider the draft amendments to ensure they will reduce compliance costs, work in a practical way for planners and their clients and do not introduce any unintended negative consequences.
AFA Welcomes Release of Draft FoFA Amendments
The Association of Financial Advisers (AFA) welcomes the release today of draft amendments to the Future of Financial Advice (FOFA) legislation for public consultation.
AFA CEO, Brad Fox said, “We are very pleased to receive the drafts in the timeframes that the Minister has previously outlined. We look forward to working through the detail, consulting with our members and our FoFA Implementation Working Group, and then making a submission to the Government.”
Draft FoFA legislation welcomed – Institute of Public Accountants
The Government’s release of proposed amendments to Future of Financial Advice (FoFA) legislation has been welcomed by the Institute of Public Accountants (IPA) as a step in the right direction.
“The IPA commends the Government in carrying out its promise to address the uncertainties involved in the current legislation while still supporting the general direction of FoFA,” said IPA chief executive officer, Andrew Conway.
“The Government has recognised the complexities associated with key elements of the legislation, particularly in the areas of consumer best interest duty and scaled advice.
ASFA welcomes draft FoFA legislation
The Association of Superannuation Funds of Australia (ASFA) is pleased that the draft Future of Financial Advice (FoFA) legislation, released by the Government today, does not change the definition of intra-fund advice.
The ability to deliver intra-fund advice in its current form enables all superannuation funds to provide real help to fund members regarding their interest in the fund. By not further limiting the definition, fund members will continue to have access to this important service.
ASFA CEO Ms Pauline Vamos says this is a good outcome for fund members.
Proposed FoFA reforms will benefit consumers – Financial Services Council
Consumers will benefit from the proposed reforms to the Future of Financial Advice legislation announced today by Assistant Treasurer, Arthur Sinodinos.
John Brogden, CEO of the FSC said: “The proposed refinements to FoFA outlined today will make it easier for Australians to get affordable advice which is in their best interest. This is good news for consumers.”
Mr Brogden also said: “Clarification on the Best Interest Duty is a positive proposal which will reduce the cost of financial advice in many instances without reducing the protections built into the reforms to protect consumers.”
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