Bankers back Government’s FOFA reforms
The Australian Bankers' Association (ABA) has voiced its support for moves to boost the professional standards in the financial advice sector.
ABA chief executive Steven Munchenberg said the banking industry backed the Government's Future of Financial Advice (FOFA) reforms and the push for higher levels of professionalism across the advice industry.
"The banking industry acknowledges that it has a central role to play in driving the development of better professional standards and in ensuring those standards are met," he said.
"Individual banks also have a critical role to play in making sure their own practices and procedures meet the standards that consumers rightly expect for trusted financial advice. These are crucial steps towards building greater consumer confidence in financial advice."
"This is a separate issue to the technical amendments needed to ensure the FOFA law works as intended and in the interests of consumers."
"The banking industry has consistently supported the original policy intent of the FOFA reforms, including the introduction of a best interests duty and a ban on conflicted payments. These new and important consumer protections remain in place under the amendments being put forward by the Government."
"What the Government and PUP's FOFA amendments do is enable consumers to continue to do their banking in simple, easy and low cost ways. Banks can continue to provide free, simple and general information across banking channels as they do now, and as customers expect. Without these amendments, consumers will find their dealings with their bank become convoluted and complex, causing consumers confusion, frustration and unnecessary costs."
"The banking industry also wants to ensure all Australians have access to affordable financial advice. We do not want to see legal complexity limit the access of Australians to affordable financial advice."
"These reforms, together with the development of enhanced professional standards, will help strengthen confidence and ensure access to affordable financial advice."
AUTHOR
Nicholas O'Donoghue
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