Change of speaker changes odds on FOFA
Last week's change in the balance of power in the House of Representatives is likely to mean the Government's Future of Financial Advice (FOFA) legislation will be passed into law with little or no amendment.
While both the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) will this week file their submissions with the Parliamentary Joint Committee (PJC) reviewing the FOFA legislation, significant change is no longer expected.
With a Coalition backbencher now sitting in the Speaker's chair, the Government has one more vote in the Parliament, effectively changing the equation for the major financial planning lobby groups.
Previously, it had been believed that the lobbying of NSW independent Rob Oakeshott and Tasmanian independent Andrew Wilkie might have garnered their support for some amendments to the legislation.
However Wilkie has subsequently acknowledged that his influence has been undermined by the change in speakers. Financial planners who had been lobbying Oakeshott had expressed doubt about his position even before last week's parliamentary announcement.
AFA chief executive Richard Klipin acknowledged that, on the face of it, the changes had placed the Government in a better position to secure the passage of its legislation.
However he said his organisation would be making its position clear to the PJC and arguing for change.
The PJC is expected to begin its hearings on Monday.
AUTHOR
Mike Taylor
Recommended for you
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.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
