AFA pinpoints outing of ISN as an achievement
The Association of Financial Advisers (AFA) says exposing the degree to which the Industry Super Network (ISN) was driving the Future of Financial Advice (FOFA) changes represented one of the positive outcomes to emerge from the FOFA process.
Noting the passage of the legislation, the AFA also claimed that the political activism of its members on the FOFA issues had also proved a positive outcome and should be maintained through the 2013 federal election.
AFA chief executive Richard Klipin nominated the ISN issue at the same time as declaring that while the FOFA outcome has not been perfect, members of his organisation need to work with what had been delivered to provide trusted and affordable advice.
"The debate was long and intense, and with the legislation passing, it's an appropriate time to reflect on what was achieved and ask - was it worth the effort?" Klipin said.
He said there were many positive outcomes, and named the most significant as being:
- Extension of an annual opt-in to biannual, with a potential option that will enable some advisers to avoid opt-in if they agree to an ASIC-approved code of conduct.
- Remuneration choice for insurance in and outside of super (excluding group plans).
- A commitment to enshrining the term(s) financial adviser/financial planner in law.
- "Softening" of the annual Fee Disclosure Statement requirements.
- The ISN agenda driving FOFA was exposed.
Klipin said one of the most significant outcomes from the FOFA debate had been the mobilisation of advisers to become politically active and individually engaged with their MPs.
"This has raised the understanding of what it is they do, and the importance of their role to the community, to a whole new level," he said.
"There is not a federal MP across the country that does not know who we are and what we do. With a federal election looming in 2013, we collectively need to maintain the focus and capitalise on what has been achieved.
"In the end, the Australian community needs to be able to access trusted and affordable advice," Klipin said.
"This is the ambition of the FOFA legislation and, whilst it is flawed policy, it is now up to the members of the AFA to ensure we deliver as best we can on this premise."
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