FPA compels Palmer, cross benchers to support FOFA changes
The Financial Planning Association (FPA) has written to Clive Palmer and fellow cross benchers to try and correct what it calls media "misinformation" around Future of Financial Advice (FOFA) changes and urge their support.
The association said the "spirit of FOFA" was still carried through the amendments, particularly with the preservation of conflicted remuneration bans and mandatory fee disclosure statements for new clients, but red tape burden on planners had been cut in the newer version of the legislation.
"The FPA fought hard to stop any re-introduction of commissions for any form of financial advice (general or personal) and we are satisfied that the Government's FOFA amendments do not water down consumer protection and maintain the ban on conflicted remuneration (including the ban on commissions for general advice aimed at selling product)," the letter said.
It also stressed the amendments also removed the unintended grandfathering consequence from the initial FOFA legislation, which meant planners could not easily move between licensees.
"We need a robust but efficient regulatory system, which is competitively neutral so that people saving for their retirement or managing financial risks through life can access affordable high quality advice," the letter said.
"The FPA requests your support for these FoFA Regulations and would encourage the Palmer United Party Senators to vote against any disallowance motion that may be made against the Regulations."
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