AFA thanks Senators and members for FoFA outcome

The Association of Financial Advisers (AFA) has expressed appreciation for the support of the Senate for providing the financial advice profession with greater certainty on the Future of Financial Advice (FoFA) Amendments.

“The prospect of having the FoFA Amendments regulations disallowed in the Senate, as a result of a vigorous campaign of misinformation by opponents of these reforms, was deeply disturbing to our members,” said AFA CEO, Brad Fox. “The work of the Government and the Senators in resolving this matter is very important to the financial advice profession and we would like to particularly recognize the Palmer United Party for its proactive action and cross bench Senators Day, Leyonhjelm and Muir who voted for these sensible reforms to FoFA.”

The AFA has stood firmly behind the key original FoFA reforms, including the ban on commissions for superannuation and investment products and the Best Interests Duty.

“These Amendments do not reduce consumer protections, but importantly enhance the efficiency of the financial advice system,” Mr Fox said.

The AFA had a delegation of senior representatives in Canberra yesterday and Mr Fox expressed thanks for the hearing the AFA received from all sides of the parliamentary debate.  “In the context of the level of misinformation we have seen around this debate and the complexity of some of the issues involved, we welcome the level of interest shown by the Senators. We particularly thank them for making time at short notice to meet with us yesterday. They expressed their understanding of how important this issue is for consumers and our members, most of whom are small business owners giving great advice to people in their local community.”

Mr Fox said the AFA would also like to thank its members for their enthusiastic response to an AFA callout last Thursday to contact Senators in their states and respond to the risk that the FoFA amendments could be disallowed.

“Using the AFA Advocacy Pack, many of our members voiced their concerns to their politicians,” he said. “The message we have received is that Senators received many, many phone calls and emails from advisers last Thursday and over the past few days. These advisers are passionate about their profession and committed to achieving the best outcomes for their clients. Our members’ actions demonstrate outstanding advocacy of their profession and we believe that is what being a part of a genuine association is all about.”

Mr Fox said, “The AFA is confident that when the dust settles, Australians will discover that they are protected by the strongest financial advice laws in the world and that the access to quality financial advice in Australia will improve as a result of the Amendments to FoFA.”