Industry must make sure FOFA delivers: Klipin
The Government has good intentions with the Future of Financial Advice (FOFA) reforms, but the advice industry needs to make sure history is not repeated, according to the chief executive of the Association of Financial Advisers (AFA), Richard Klipin (pictured).
In his speech at the AFA National Roadshow in Sydney, Klipin referred to the Financial Services Reforms (FSR) implemented in 2002 and the measures that resulted in more complex financial advice being provided to retail investors.
“Just like with the FOFA reforms, the Government stated the intent of FSR was concise and transparent advice. This was clearly what the industry needed, but that doesn’t mean it also needed 80-page Statements of Advice,” Klipin said.
“What we as the industry need to make sure is that these reforms actually translate into better practice,” Klipin said.
He added the opt-in arrangements were the worst part of the proposed FOFA reforms and that the industry needed to fight hard against them.
“Consumers have the right to walk away anyway. There are very few supporters of this policy other than our friends in industry super,” Klipin added.
According to AFA’s latest research, almost three in four advisers did not support opt-in and expected it to have a negative impact on their business.
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