With mainstream media reports condemning the FOFA amendments growing in number by the day – including shadow treasurer Chris Bowen’s appearance on ABC TV’s Lateline last night reiterating the ALP’s opposition – the two major financial advice industry associations have both gone on the offensive.
“The squabble over Australia’s retirement pool needs to stop – client and advisers are on the same side of the fence,” AFA chief executive Brad Fox told the AFA GenXT roadshow in Sydney today, adding that the latest mainstream media suggestion of a “return to commissions” is a “fallacy”.
“We risk a whole generation of retirees moving into that phase of their lives without advice – that is what’s at stake,” he said.
Meanwhile, last night the FPA issued a strong statement condemning the “empty product rhetoric” and “scare mongering” creeping into the public debate on the FOFA best interests duty.
Speaking to ifa, Mr Rantall added that “this issue is too important to allow it to be politicised”, given the consumer protection ramifications of the debate.
“Everybody is entitled to their opinion and product providers are entitled to their view, but they don’t speak for the consumer or represent the public interest as the profession does,” he said.
Offering a perspective on the regulatory and legislative year ahead, AFA chief operating officer Phil Anderson told the GenXT roadshow “it is clear the ALP will not support” the amendments.
However, Mr Anderson also touched on a note of optimism, anticipating that the new members of the federal Senate due to take their seats in July may well have a more “favourable view of small business” – meaning they may be open to listening to the industry’s concerns.
Yesterday, ifa reported comments made by Industry Super Australia chair and former NSW Liberal Opposition leader Peter Collins at the Financial Advice in Super Symposium in Melbourne on Friday, in which he pledged the ISA would be ramping up its anti-amendment rhetoric.
For ifa‘s take on the role played by the industry associations in the FOFA consultation and amendment process click here
Michael one of the main things the FPA did wrong was to get into bed with the Union Funds. The same group who were (are still are) hell bent on destroying the people the FPA are supposed to represent. The funny thing was Mr Rantall seemed surprised with the union funds most recent comments about FOFA and advisers. A leopard doesn’t change it spots, every knows that, well except for the FPA.
I continue to be intrigued by the vitriolic attacks directed at the FPA by a small number of individuals. It is not clear whether Steve is a FP practitioner, but as a planner active before the establishment of the FPA in 1992 I recognise the achievements of the Association over the past two decades. The FPA stance re FOFA remains a compromise that will serve both the community at large and our emerging FP profession.
Why are we talking about Ford and Holden when we could be talking about the reintroduction of conflicted remuneration for all forms of financial advice?
Steve
None of your comments are true. The current Falcon and Commodore have the top safety rating and their economy is very good given their size and purpose.
The FPA did not create FOFA, they worked tirelessly to ensure draconian conditions were toned down or excluded.
I don’t like labour but they didn’t kill our car industry. Ford & Holden killed it themselves. Anyone with a fraction of car knowledge knows what absolute ancient rubbish they have been producing. Holden still using an old tech engine from the 60’s & ford with their boring badly built gas guzzling taxi’s. Both car makers fell asleep at the wheel decades ago & slept peacefully under our import tariffs while shoving badly built death traps to a dumb nation of sport obsessed patriots. Bring on top quality CHEAPER imports.
The FPA have also been caught NAPPING. Too busy forcing education as the issue so it can sell its expensive online courses & flog more memberships. You could of steered this industry much much better FPA but you chose the self interest route of scaremongering. You, the FPA created this fofa rubbish from your years of course flogging. You the FPA sold your members out & are now pretending to care. Too little too late FPA!
Labor need to have a good look at them selves. they have blown our future reserves that could be used to ride out tough times, they have killed the car and a number of other industries, through their greed and inflexible work place demands (good one boys, now you dont have a job) and the continue to fight for their right to get billions of dollars forced into their grubby little hands, through the compulsory super contributions to my super funds. They need to be held to account. Watch out ISA, I bet there will be at least a few tied up with the Royal commission into unions and again they will be fed by the public purse in jail.