Sinodinos sends signal on conflicted remuneration
Sinodinos signals changes on FOFA conflicted remuneration based on more specifics.
The Federal Government has signalled that it will be making changes to some of the conflicted remuneration elements of the Future of Financial Advice legislation.
The changes were signalled by the Assistant Treasurer, Senator Arthur Sinodinis who said that the Government's objective was to maximise the number of people who can access financial advice.
In a pre-recorded interview with Association of Superannuation Funds of Australian chief executive, Pauline Vamos, Sinodinos referenced the conflicted remuneration elements of the FOFA legislation and the need for greater specificity around the issue.
"We want to be more specific about the mischief there [conflicted remuneration]," he said.
Sinodinos said a priority for the Government was reducing the compliance costs associated with FOFA.
On the question of default funds under modern awards, the minister said the intention was to maximise competition but that in addressing the issue the Government would not be adopting an ideological approach but, rather, developing its position based on the evidence of the industry.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
