Govt won’t be rushed on grandfathering changes
Assistant Treasurer Arthur Sinodinos has promised the Government will ensure appropriate grandfathering arrangements are in place, but that there will be a process to it.
Speaking at the Association of Financial Advisers (AFA) national conference on the Gold Coast yesterday, Sinodinos said the process — by which the Government would "discuss, listen and work on the Future of Financial Advice (FOFA) issues with all stakeholders" — would be announced shortly.
"I can assure you I'm here to work with the industry, including the AFA and its members, in an expeditious way to ensure appropriate grandfathering arrangements are in place," he said.
"We're not going to be rushing on this. We know there are deadlines that have to be met, but we've got to make sure we provide certainty for the industry as to where the Government stands."
Sinodinos did not specify the timeframe for the implementation of the FOFA changes, but he did say the Abbott government remained committed to the 16 amendments it announced as part of its election promise.
He added that adviser remuneration with respect to life insurance remained one of the government's top priorities and that the experience in the UK showed that banning commissions in this space worked to the detriment of the industry and the consumers.
"Such measures increase costs for consumers, limit their choices and leave many people worse off," Sinodinos said.
"We have supported the elimination of conflicted remuneration in the financial services industry and we commend the industry itself on the work it has undertaken to eliminate these structures, particularly by moving to the fee for service model and reducing reliance on product commissions."
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