AustralianSuper urges against FOFA delay
Australia's largest industry fund, AustralianSuper, has urged against any delays to the implementation of the Government's Future of Financial Advice (FOFA) changes, arguing the financial advice industry has had sufficient time to accommodate the regime change.
In a submission filed with the Parliamentary Joint Committee reviewing the FOFA bills, AustralianSuper chief executive Ian Silk said the financial services sector had had a long period of notice and consultation in relation to the reforms.
"We do not see it to be necessary, nor in the best interests of consumers of financial products, for these reforms to be delayed any further," Silk's submission said.
"We note that sections of the superannuation industry might have an interest in delaying these reforms so that they coincide with the Stronger Super reforms," he said.
"This delay would allow another 12 months of financial advisers receiving commissions and volume bonuses on compulsory superannuation of Australian workers.
"It would also allow another 12 months of financial advisers receiving commissions and volume bonuses on investments made by consumers in a range of other financial products that have nothing to do with superannuation."
The AustralianSuper submission said the fund did not believe that a case had been made out "why consumers of all financial products should by paying commissions and volume bonuses to financial advisers for another 12 months".
The submission also sought to argue that no link exists between Stronger Super and the provision of intra-fund financial advice.
"To consider delaying the commencement of the FOFA reforms because of the introduction of the intra-fund advice reforms as a component of the Stronger Super reforms would be ill-conceived and based on inaccurate information," it said.
"We suggest also that all aspects of intra-fund advice reforms need to take effect from 1 July, 2012, in order for them to work properly," the submission said.
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
