The Financial Planning Association of Australia (FPA) welcomes the opportunity to contribute to the Future of Financial Advice (FoFA) reforms. The proposed amendments are significant changes and we hope to engage in further consultation with Treasury and the Government on these changes in the coming weeks.
The FPA is broadly supportive of the Government’s intent to improve FoFA by reducing unnecessary red tape and providing certainty for scaled advice, without exposing consumers to unnecessary risk. However, there are major risks and challenges in this endeavour. It would not be in the public interest if these proposed changes reversed the FoFA generated shift to ‘fee-for-service’ advice business models, or undermined the necessary evolution ‘sales and distribution’ to professional advice centred on the client (‘client first’).
Our general aim in this submission is to identify some flaws and risks in the proposed changes, and where possible suggest improvements in the drafting to reduce the risk of consumer detriment.
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