Future of Financial Advice (FOFA) pack for AFA members

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AFA launches a Future of Financial Advice (FOFA) pack for members.

The Association of Financial Advisers (AFA) have launched an information pack for members about FOFA reforms and their business. CEO Richard Klipin said the FOFA pack is designed to help financial advisers understand the key issues, timeframes and impacts of the proposed FOFA reforms, and may also help them explain the reforms to their clients.

“As we approach the final quarter of the FOFA process now is the time for advisers to come to grips with the key issues so that they can reposition their businesses and be FOFA ready,” he said.

A copy of the pack is available by clicking  THE FOFA COUNTDOWN: AFA LAUNCHES MEMBER PACK

AFA AND CONSUMERS

AFA National President, Brad Fox, said that in the countdown to FOFA, the AFA will continue to lobby hard on behalf of the clients of all financial advisers to ensure any reform remains true to its original intent – serving the best interests of consumers.

“We have solid evidence, in the form of our Back to Basics consumer research report issued last year, that our clients highly value the advice they receive and have greater peace of mind about their financial future,” he said. “Their faith in us means we have an obligation to make sure their voices are heard. We always have and always will fly the flag for them at the FOFA table.”

Mr Fox says that in the interests of consumers, the AFA has firmly held the line against various proposed reforms, such as the banning of commissions on risk products and opt-in, even when its views were not popular. “We have continued to argue loudly against so-called reforms which actually run counter to the consumer’s best interests,” Mr Fox said. “We firmly believe that any reforms that make it more difficult to access advice in relation to building and protecting the wealth of everyday Australians make for bad policy – and we have never been afraid to label bad policy.”

LEVEL PLAYING FIELDS

The AFA is also calling on Assistant Treasurer and Minister for Superannuation and Financial Services Bill Shorten to ensure a level playing field for all who operate in the financial advice space.

“Currently, super funds, and in particular, industry funds providing intra-fund advice to their members, have a class order exemption from the obligation to know the financial situation of the member they are advising,” Mr Fox said. “We believe that any rules and obligations that apply to financial advisers operating outside the industry fund environment should apply equally to those operating within it.”

The AFA has been heavily involved throughout the lengthy FOFA consultation process. The association is a member of both the FOFA Peak Consultation Group and Minister Shorten’s Roundtable on Ethics, Professionalism and Education and has regular meetings with:

  • Minister Shorten and his team
  • Shadow Minister Cormann and his team.
  • The FOFA Treasury Team
  • The ASIC team

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