Delay FOFA implementation, says AFA
The only winners from the Government's Future of Financial Advice (FOFA) changes will be industry funds and the big end of town, according to Association of Financial Advisers (AFA) chief executive, Richard Klipin.
At the same time, the AFA has called on the Government to delay the implementation of FOFA beyond 1 July, next year.
Klipin has pointed to the proposed FOFA regime as undermining the robust, healthy and vibrant independent sector, with greater consolidation spelling fewer choices for Australian consumers.
"The Government's agenda is now on show for all to see, and the Government needs to provide evidence and modelling to back up its claims that FOFA will provide a growth strategy for the industry," he said.
Klipin said while the changes were purportedly designed to protect consumers, the reality was the only winners would be industry funds and the big end of town.
AFA president Brad Fox also pointed to problems flowing from the prolonged period of regulatory uncertainty surrounding the FOFA changes and manner in which they were negatively impacting business flows, practice profitability and longer-term planning.
Fox also strongly criticised the Government's decision to release the draft FOA legislation in two stages, saying the Government had delivered its first tranche late, but had shown no signs of moving implementation beyond 1 July, next year.
"If advisers are expected to make significant changes to the way they operate, the Government must defer the implementation date," he said.
AUTHOR
Mike Taylor
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