Time to implement reform: FPA

The now confirmed Gillard Government must “move quickly” to finalise details regarding reforms to the financial advice industry.

The call for swift action was made by Financial Planning Association (FPA) chief executive Mark Rantall, who said the association, was “looking forward” to continuing consultation on the implementation of the Labor Government’s Future of Financial Advice reforms.

“The planned reforms will significantly affect financial planners, particularly those operating small businesses. The FPA is urging the government to finalise details and move quickly to ensure planers can appropriately adjust their practises to meet the imposed deadlines,” Rantall said.

Rantall said the FPA would seek to brief the relevant MPs and Senators to “ensure they are across all aspects affecting financial planners and the finances of Australians”.

The FPA still has concerns about the MySuper policy, outlined in the Cooper Review and supported by the Labor Government.

John Brogden, chief executive of the Financial Services Council, said it was too early to say what impact the new Government would have on the financial services industry.

One of the biggest unknowns is who will take the portfolio for Superannuation and Financial Services, with Chris Bowen likely to be given a more high profile appointment in the new Government.

Brogden said the FSC would be “very happy” if Bowen stayed in the job, but failing that, would be hoping for a minister who was committed to the existing reform agenda.

Another key question, Brogden said, was how much of the existing reform agenda would be implemented, with the Gillard Government required now to work out which issues to try to push through a very different parliamentary landscape.

Also as yet unclear, Brogden said, was where the independents and Greens sat with regards to key aspects of financial services policy and reform.

Brogden said the FSC remains committed to ensuring the lift in super guarantee to 12 per cent remains a priority, while it remains strongly opposed to the Cooper Review’s MySuper proposals.

Of overall importance, Brogden said, was for the reform agenda to be implemented, and for the industry to embrace the proposed changes in order to encourage a higher level of trust between the industry and the Australian public.