Questions raised on ASIC's FOFA approach
The Federal Opposition is understood to be considering questions about why two former senior staffers from consumer group, Choice, are now playing a central role within the Australian Securities and Investments Commission's (ASIC's) development of the Future of Financial Advice (FOFA) regulations.
The Opposition is understood to have received expressions of concern from some people in the financial services industry that the two men - ASIC commissioner Peter Kell and ASIC general manager Nick Coates - have both worked for Choice, while Coates was also employed by Industry Funds Management.
Coates was working for the Australian Consumers Association (ACA) - now Choice - at the time ASIC imposed an enforceable undertaking on AMP in 2006 and was harshly critical of the commission-based remuneration system which prevailed at that time. He later worked for Industry Funds Management.
The ACA was part of a coalition of groups (which included the Industry Super Network) which prosecuted a strong lobbying approach in the lead-up to the Parliament's consideration and passage of the FOFA bills.
Both Kell and Coates participated in the recent Association of Financial Advisers (AFA) national roadshow, outlining ASIC's approach to the FOFA regulations. Kell has also provided background to ASIC's approach to other key industry events.
None of the major planning groups such as the AFA or the Financial Planning Association have raised issues about either Kell or Coates.
The Opposition has given no indication of whether it will pursue the ASIC approach via the committee processes when Parliament resumes later next month.
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