Sarah Abood

“We welcome the government’s decision to further amend S99FA of the SIS Act as part of its Tranche 1 DBFO Bill.

“The FAAA, along with many other organisations, has been advocating for some time for this outcome, and we are pleased that the Minister has heard our concerns and acted.

“The proposed changes to the wording of Section 99FA are a positive step. It confirms that there is no intent to change the existing practice of superannuation funds when checking that financial advice fees are being paid in accordance with the Sole Purpose Test. This should reassure superannuation funds that their existing risk-based approach can continue, minimising additional documentation requests to advisers.

“We are hopeful that this legislation will now swiftly pass and we can move to assisting with the implementation of the measures this bill includes, reducing the unnecessary red tape involved in the provision of financial advice.

“We continue to engage with the Minister and Treasury on the Tranche 2 reforms of the Quality of Advice review. These reforms have the potential to make good on the promises of the Quality of Advice Review and increase access to high quality financial advice for more Australians.”

By Sarah Abood, CEO

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