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
As the year draws to a close, a new report has explored the key trends and areas of focus for financial advisers over the last 12 months.
Assured Support explores five tips to help financial advisers embed compliance into the heart of their business, with 2025 set to see further regulatory change.
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
