AFA issues FOFA pack in rally call to all Financial Advisers

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The Association of Financial Advisers (AFA) today officially launched the AFA FOFA In Focus Member Pack to lead, support and inspire all financial advisers through the FOFA reforms announced by the Minister for Financial Services and Superannuation, Bill Shorten on Wednesday, 28 April 2011.

The AFA Member Pack is designed to help all advisers, whether they are members of the AFA or not, to understand:

  • FOFA key facts and key dates
  • Impacts of FOFA on consumers and advisers
  • AFA’s role and policy position

It provides a clear way forward for advisers, so that they can future proof their practices as well as have an impact on the final FOFA outcome.

AFA CEO Richard Klipin said, “The original intent of FOFA was to create a transparent market that acts and operates in the interests of consumers, following Storm, Opes Prime and other key market failures. However, the FOFA rhetoric has not been matched with strategy and consumers’ real needs have fallen on deaf ears.”

Mr Klipin said that to ensure appropriate outcomes for all stakeholders, the AFA had commissioned a number of research papers including Back to Basics and Risking Everything which had provided the Government with clear, concise and articulate insights into the world of consumers and advisers.

“Our consumer research shows that FOFA will drive up the price of advice and increase red tape for consumers, advisers, licensees and product providers, for no discernable consumer benefit,” Mr Klipin said. “FOFA has failed to strike the right balance between improving advice outcomes on the one hand, whilst retaining access and affordability for all consumers on the other.”

Mr Klipin said the debate is still in full force, but has moved from a policy to a political debate.  “We must ensure that our collective voice is heard,” he said.

AFA President, Brad Fox said that AFA members have an expert understanding of consumers and their needs. “This year the AFA celebrates its Diamond Anniversary. This means our members have advised consumers at the coal face for the past 65 years. We therefore have a deep understanding of consumer expectations and the transformative value that quality financial advice provides. These are the interests that we will argue for, so that consumers retain the right to affordable, accessible advice.”

The AFA FOFA in Focus Member Pack was compiled by the AFA in collaboration with members of the AFA leadership team, practitioner members, licensee members, product partners and technical experts from across the market.  Copies are available free to all advisers, whether they are members of the AFA or not. To download a copy, click here

 

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