After meeting with key independent politicians in Canberra this week, the Association of Financial Advisers (AFA) can confirm that the concerns of financial advisers in relation to the Future of Financial Advice (FOFA) reforms are being heard.

An AFA delegation returned from the national capital this week, after visiting independent Members of Parliament, Tony Crook, Rob Oakeshott, Tony Windsor, and Andrew Wilkie, as well as the Greens, the Minister for Financial Services and Superannuation, Bill Shorten’s key adviser and Treasury.

“We had great access to politicians and are very pleased to report that they have met with many of their local constituent advisers often,” Mr Klipin said. “This tells us that our grass roots campaign to move the policy debate to political engagement is working.”x

Mr Klipin said it is very encouraging that the politicians the AFA visited had heard and understood the very real concerns advisers have about the profound and potentially damaging effect some aspects of the FOFA reform will, if carried forward into legislation, have on advisers, their businesses and the clients they serve.
z
“The message we took to Canberra was that the AFA is actually really supportive of the intent of FOFA – everybody, including financial advisers, would like to see legislation that results in better outcomes for consumers and better access to advice,” he said. “We would love to publicly support the legislation when it comes out in draft form, but we can’t support components which we believe are clearly not in the national interest.”
z
The AFA has consistently argued that some aspects of the FOFA reform package announced by the Government in April will impose higher costs on consumers, impede their access to advice, tie them up in red tape and create even greater confusion.
z
Mr Klipin reiterated that while the AFA believes the original intent of FOFA was commendable, the execution is not. “As they currently stand, the FOFA reforms mean even fewer people will have access to affordable advice which could ultimately mean fewer will have adequate levels of insurance and fewer will have enough in retirement savings. The impact of that is crystal clear – more people lining up for Centrelink benefits.”
z
Mr Klipin quoted from the AFA’s Back to Basics research which identified that while only two in 10 Australians currently get advice, good advice gives people choices and leads to higher levels of savings, more appropriate levels of insurance and greater control of their future.
z
Mr Klipin also said that while the AFA’s grass roots campaign is gaining traction, now is not the time for complacency.
z
“In fact, advisers should be upping the ante,” he said. “Our endeavours to have some of the FOFA proposals amended so that we actually see an improvement in outcomes for advisers and their clients have only just begun. We encourage all advisers who have not yet visited their Member of Parliament to make an appointment today.”
z
The Minister for Financial Services and Superannuation, Bill Shorten will address 400 AFA members at the AFA lunch on Monday 27 June.
z
“If you have questions you want to put to the Minister, Monday is your opportunity,” Mr Klipin said.

The post AFA campaign gains traction; meeting with Independents appeared first on AdviserVoice.

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

The post AFA issues FOFA pack in rally call to all Financial Advisers appeared first on AdviserVoice.

1. Increasing education standards for new and existing advisers
2. Financial advisers and the scope taxation advice

Together with FoFA these proposed changes will impact the landscape of advice in this country. The AFA is well placed to ensure that these changes are appropriate and will work to ensure that the implementation is as effective as possible.

RG 153 : Advisers and Education RG 153

Click here to read RG 153

Future Regulation of Financial Planners Providing Tax Advice

1. The scope of services that can be provided by financial planners is determined according to the type of registration held.
2. A financial planner can provide general factual tax information (not tax advice).
3. If a financial planner has an additional form of registration, they can provide tax advice within the context of providing financial advice. The scope of tax advice that will be permissible within this category will depend upon the competencies that are required.
4. Tax agents registered under the Tax Agent Services Act 2009 provide full tax agent services including preparing or lodging returns or representing a taxpayer in their dealings with the Commissioner of Taxation.

Click here to read the Minister’s speech

The post AFA: FOFA reforms include new education standards appeared first on AdviserVoice.