The Association of Financial Advisers (AFA) has sent a letter outlining its five major concerns relating to the proposed Future of Financial Advice (FOFA) legislation to the Independents, relevant frontbenchers and members of both Houses of Parliament.
“The AFA has always supported legislation which will improve transparency around advice and increase consumer access to advice,” Mr Klipin said. “However we believe that the draft FOFA legislation, as it currently stands, fails on both these counts.”
Mr Klipin said the Parliamentary Joint Committee (PJC) majority report on FOFA contained a number of misunderstandings in relation to evidence from the industry.
“It was disappointing to see how they have ignored consistent feedback from the industry on the significant issues with this legislation,” Mr Klipin said.
“While the Dissenting Report addressed these misunderstandings, the Government’s FOFA position appears to have hardened.”
Mr Klipin said the AFA visited Canberra last week and had many constructive high level discussions.
“We met with the key advisers of Independents, we had forthright and honest dialogue with the Greens and the Government and we continue to have good ongoing dialogue with the Coalition,” he said.
“After the release of the PJC report and as a result of our discussions, we have formed the opinion that the Independents will be key in amending FOFA.”
Click here to read a copy of the AFA’s letter to politicians.