FOFA failing on most counts - AFA

The Association of Financial Advisers (AFA) has vowed to keep fighting against key elements of the Future of Financial Advice changes, particularly opt-in, arguing they represent bad policy unsupported by independent or objective research.

In a position paper sent to its members late last week, the AFA made clear its continuing concerns over the contents of the first tranche of the FOFA changes, and pointed to the likely issues for concern for advisers in the second tranche of the legislative package.

The position paper said while the AFA believed the overall intent of the FOFA package was "honourable", the Government's execution of the issue was not.

"The game plan has been hijacked by sectors looking after their own political interests - groups which see FOFA as a way to weaken the role of advice and the role of financial advisers while strengthening their own," it said.

The AFA paper said a slight chance might still exist for the FOFA changes to deliver on their original objectives by better defining what constitutes financial advice and by better protecting consumers.

"As drafted, however, FOFA fails all of these strategic aims," it said.

The AFA paper said the organisation believed the legislation had failed consumers and was utilising a heavy-handed approach to force change "without a shred of independent research, without any Treasury modelling or rigour, and with no clear evidence as to the impact and consequences for consumers, advisers or the industry".