IPA welcomes Coalition’s deregulation promise
The Institute of Public Accountants (IPA) has welcomed the Coalition's new policy paper which re-affirms the promise to repeal some of the more controversial elements of the Future of Financial Advice (FOFA) legislation.
Earlier this week, the Coalition released a new paper called ‘Policy to Boost Productivity and Reduce Regulation' which outlined the steps a Coalition Government would take — if elected — to reduce the regulatory burden in a number of areas, including financial services.
However, IPA chief Andrew Conway said the proof would lie in its implementation.
"The proposed policy from the Coalition rings the right bells but we have experienced a number of good proposals from past government reviews; what has been lacking is follow-through with implementation and the accountability to make it happen," Conway said.
"It is good to see the acknowledgement that regulatory burden is indeed ‘strangling Australia's economic prosperity'."
What is particularly pleasing to the IPA, Conway added, was the strengthening of the process around regulation impact statements which the IPA had long advocated.
"It is vital to understand the ramifications that regulatory compliance has on business, particularly small business, before it is just simply imposed," he said.
The Coalition's policy paper points to the Financial Services Council's estimation that FOFA would cost the industry up to $700 million to implement and $375 million in annual compliance. It promises to repeal the opt-in requirement and improve the best interest duty and fee disclosure statement requirements, among other changes.
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