The proposed changes to FOFA would include “relaxing” part of the regime that requires financial advisers to act in their clients’ best interest, Taxpayers Australia stated.
“That the financial planning industry is looking at a future without a robust best interests duty puts at real risk the regard that finance professionals would hope to earn from consumers, and will be a retrograde step for [the] industry,” the organisation said.
“Planners who are enthusiastic about the proposed FOFA wind-back had better dust off their garish checked suits, because the market will most likely trust the industry with their financial wellbeing as much as they’d trust a used car salesman.”
By going ahead with these proposals, the Assistant Treasurer Arthur Sinodinos would be “laying the groundwork for the next financial mis-selling scandal” said Taxpayers Australia spokesman Mark Chapman
“These proposals aren’t about cutting waste or eliminating red tape, they’re about removing the fundamental right of consumers not to be ripped off. There is no possible upside to consumers in these proposals and plenty of downsides,” he said.
“The basic right to be properly advised and to be automatically told how much of your investment is going into your chosen product and how much into the pocket of your adviser in fees and charges really shouldn’t be up for discussion in 2014.”
You are all completely correct and I am completely over it!
I will listen to any opinion/argument and am very willing to change my views provided the substance of the case is robust. However the problem remains that considered and well thought out journalism is almost non existent these days. The 24 hour media cycle seems to the all important factor.
Started by Bob Carr, finessed by Krudd.
Here’s a conundrum for the Taypayers Australia to consider. If I start a business supplying widgets and I provide unqualified advice, ordinary service with ordinary products; I’d likely go out of business in no time at all. But the facts will show that Financial Advisers businesses run for 20-30 years with clients loyal to that adviser for most of their planning lives. Yet Taxpayers Australia would have us all believe that we are the only industry on the planet who (despite the onslaught and exposure of our alleged self-interests) can still convince clients to retain our services and continue to trust us with their futures.
Once you have been on the inside of a complex issue and seen how it gets mangled in the media you learn to take the reporting of evey other complex issue with healthy skepticism.
Gerry how right you are, a political football we have become where we are always the villian.
I didn’t realise there were so many consumer advocates out there. I am truly humbled that so many who have no idea take such interest in our affairs.
They obviously do not understand the issue.