Oakeshott's opt-in comments welcomed

Recent comments by independent MP Rob Oakeshott that he does not support Labor’s proposed two-year opt-in arrangements have been welcomed by both the Financial Planning Association (FPA) and the Opposition.

The FPA said it hoped Oakeshott’s comments would lead the Government to reconsider the proposal, stating that it would continue to talk with the Government, Opposition and independents to further refine the reforms prior to the legislation being drafted.

“We have strongly lobbied against legislating an opt-in requirement and the unintended consequences that it could cause,” said FPA chief executive Mark Rantall (pictured).

The FPA believed the abolition of these and the implementation of fiduciary duty would make any opt-in requirement excessive and obsolete, he said.

“No financial services profession in the world has a legislated opt-in, and the problem it was designed to fix has been addressed,” he said.

Shadow Financial Services Minister Mathias Cormann also welcomed the comments, and described opt-in as bad policy that would add unnecessary red tape and increase costs for both small business financial advisers and their clients.

Cormann also said the policy would be made redundant by other changes including fiduciary duty, and added that Treasury estimates an average small business advisory firm would face $50,000 in additional costs each year under opt-in.

“These additional costs would have a significant impact on smaller and regional financial advisory practices limiting availability, accessibility and affordability of high quality advice to consumers,” Cormann said.