“What we had hoped for by this time was for all the wrinkles to have been ironed out,” said AFA President, Brad Fox, “but as it turns out we are still awaiting clarification on key issues. Delays hinder the adviser’s ability to get on with business and, as an industry, we have waited long enough.”
 
Mr Fox said the industry is looking for finalisation of the regulations in relation to the grandfathering of payments by platform operators and the release of regulatory guidance on codes of conduct.
 
“While the Government has indicated that adherence to approved codes of conduct may obviate the need for opt-in, we believe they may  also result in the introduction of even more stringent measures,” he said. “However, we cannot make a proper assessment, because to date, no guidelines have been issued.”
 
Mr Fox said that the AFA believes key elements of the FoFA legislation are inconsistent with the broad aim of FoFA – which was to increase access to affordable advice for everyday Australians.

“We continue to argue that while the intent of FoFA was honourable, the execution is terrible,” he said. “It is our belief that the agenda was hijacked by vested interests and we will continue to support the removal of elements of the legislation which we believe run counter to the interests of consumers.”
 
Mr Fox said the AFA appreciates the efforts of Liberal Party Senator Mathias Cormann and the Federal Opposition in trying to address the worst elements of FoFA.

“We note and are encouraged by the Coalition’s commitment to repeal opt-in and fee disclosure statements for existing clients,” he said.

Mr Fox said the Government’s suggestion that licensees and advisers will ‘race’ to be FoFA ready was unrealistic.

“It is impossible for the industry to be ‘ready’ to implement FoFA when key elements have yet to be finalized,” he said.  “The industry must wait for further clarification and therefore an implementation date of 1 July 2013 is much more likely.”

Mr Fox said that despite the AFA’s disappointment over the reforms, the association is focused on helping members through the next 12 months.
 
“Our focus now is on supporting our members in preparation for the changes brought about by the FoFA legislation,” he said.  “As a key part of this process we will place a strong focus on FoFA preparations at our National Roadshow in July, where our presenters will include Commissioner Peter Kell from ASIC.”

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