AFA calls for unified advice rules

The Association of Financial Advisers (AFA) has reiterated its calls for a level playing field for all who provide financial advice to retail clients – including the industry super funds.

AFA national president Brad Fox (pictured) noted the industry super funds had a class order exemption from the obligation to know the financial situation of the member they were advising.

“We believe that any rules and obligations that apply to financial advisers operating outside the industry fund environment should apply equally to those operating within it,” Fox said.

Fox’s comments came amid the launch of the AFA’s Future of Financial Advice (FOFA) pack for its members, which the association said would help advisers understand the timeframes and impacts of the proposed reforms.

The eight-page pack contains descriptions of different Government proposals, such as fiduciary duty, intra-fund advice, opt-in, volume payments and commission – along with the outline of the AFA’s position on these issues.

Fox said the AFA had firmly held the line against various proposed reforms, such as the banning of commissions on risk products and opt-in.

“We firmly believe that any reforms that make it more difficult to access advice in relation to building and protecting the wealth of everyday Australians make for bad policy,” Fox said.

The pack also contains the legislative timetable, outlining details of when the FOFA legislation will be released, tabled and implemented.

The AFA chief executive, Richard Klipin, said now was the time for members to reposition their businesses and be “FOFA-ready”.