FSC questions whether FOFA achieved its objectives
The Financial Services Council (FSC) has declared that it will conduct formal research into whether the Future of Financial Advice (FOFA) changes have actually succeeded in making financial advice more accessible and affordable.
The industry body has declared its intentions in an outline of policy priorities published this week in which it has also confirmed its intention to develop a new industry standard for widening insurance approved product lists (APLs).
However it is the study into the effectiveness or otherwise of the FOFA changes which is likely to draw most attention from the financial planning industry, with the FSC policy priorities document seeming to question whether the primary objective of accessibility and affordability had been achieved.
"One of the objectives of the FOFA reforms was to make advice more accessible and affordable to consumers, in addition to improving the trust and confidence in financial services. The question is whether FOFA has been effective in achieving this," the FSC policy document said.
"FSC believes that accessibility and affordability of advice are absolutely critical to facilitating the financial wellbeing of Australians and will research whether FOFA has been effective," it said.
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