Govt still committed to FOFA changes
The Government will continue to pursue its Future of Financial Advice (FOFA) changes and is not walking away from the issue, according to the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann.
Cormann has denied suggestions that the Government may walk away from its FOFA changes because they have become politically unpalatable.
Speaking on national radio, Cormann said that the Government had taken the changes to the last Federal Election and that no one within the Government had approached him to suggest that the changes should no longer be supported.
"Really what we are focused on is removing unnecessary and costly red tape which pushes up the cost of advice for people across Australia who are saving for their retirement," he said.
"Last week the Senate did vote to disallow the FOFA regulations, the legislation in relation to FOFA remains before the Senate," Senator Cormann said. "We will now, given what has happened last week, return to discussions with relevant crossbench Senators to see as to what extent there is common ground for sensible improvements."
"Our commitment ultimately is to ensure that we have got the right balance between strong consumer protections but also making sure that access to high quality advice for Australians remains as affordable as possible," he said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
