Disallowance of the Future of Financial Advice regulations will cause havoc for consumers and financial advice providers, the Financial Services Council said today.
John Brogden, FSC CEO said: “This disallowance motion will create a legal quagmire that will lead to disruption and unnecessary costs and will reduce affordability and accessibility of financial advice.”
“Overturning the FoFA regulations at the eleventh hour will do more harm than good,” Mr Brogden said.
“The market impacts of an immediate disallowance would create a legal quagmire, millions of dollars in business disruption costs and reduce affordability and accessibility of financial advice to Australians.
“We are calling on the Senate to vote against the disallowance motion today to allow Parliament and the industry time to consider the proposals and to address any concerns.”
“The industry has been working under the current FoFA arrangements since 1 July. To turn around and just throw them out is irresponsible.”
“The market impacts of disallowance have not been considered by the Senate.”
The Government’s regulatory impact statement estimates that FoFA in its current form is achieving ongoing compliance cost savings of around $191 million per year, as well as once-off implementation cost savings of around $88 million.
Mr Brogden also said: “The laws FoFA we have in place today have the strongest possible consumer protections. These have never been watered down.”
