Michael Nowak
Policy and advocacy will again be high on the Association of Financial Advisers (AFA)’s agenda in 2014, following a year in which the association made a total of 22 submissions on policy and regulatory change.
“It has been an exceedingly demanding year from a policy perspective,” AFA President, Michael Nowak said. “By maintaining an authentic voice in advocating for sensible regulatory outcomes, the AFA is in a strong position to influence future policy settings.”
The AFA made submissions on behalf of advisers on a wide range of issues in 2013, including the implementation of FoFA reforms, superannuation, TASA, corporate superannuation advice, education and training. “We made submissions to Government, Treasury, ASIC, the Tax Practitioners Board as well as other parties and we expect the coming year to be just as busy,” Mr Nowak said.
The AFA is passionate about serving the interests of AFA members and their clients and one of its core objectives is to help members deliver great advice to more Australians. “This is why we held firmly to our beliefs, opposing elements of FoFA that are counter-productive to more people getting access to affordable, quality financial advice,” he said.
Mr Nowak also said the AFA welcomed the new Minister, Senator Arthur Sinodinos to his role following the 2013 Federal Election and is pleased with the consultative process the new Government has demonstrated since being elected into office in September. “We were exceptionally pleased that the Minister chose the AFA National Conference in October to deliver his first speech as Minister to the financial services industry; a speech in which he shared his views on the valuable work our members do with their clients,” he said.
The AFA supports the Government’s proposed changes to FoFA and is looking forward to the FoFA amendments announcement in the near future. “We have ensured that the Government understands the time critical issues affecting the advice market,” Mr Nowak said, “In particular, pressing concerns with issues such as grandfathering and how it is preventing advice practices from choosing a new licensee.”
AFA COO, Phil Anderson, said the Government has already flagged a Financial System Inquiry and has begun a consultation process on MySuper and default superannuation. “The Financial System Inquiry presents an opportunity for a number of important issues to be addressed, including the implications for consumers of MySuper, corporate super advice, superannuation governance and external dispute resolution schemes,” he said. “We are actively engaged with the Government and expect to provide significant input into the Financial System Inquiry and any other inquiries that may be subsequently launched.”
Mr Nowak said the advice market is entering an exciting phase. “The AFA has chosen the theme INNOVATE: Think. Create. Act. for 2014. We are again taking the initiative next year to help advisers and their practices find the opportunities that exist in our rapidly changing market. Consumers, legislation and business models – they are all changing and a time of change is synonymous with a time of opportunity. We don’t think there has ever been a better time to be able to experience the value of AFA Membership – the advocacy, inspiration, sense of community. It will be a great year.”