Industry body says ALP better for advisers over Coalition

In a communication to its members this week, the AIOFP said it believes an ALP government will more beneficial to the financial advice sector.

“From 2007 until 2013 the ALP instituted the FOFA legislation which banned financial product commission but excluded risk commissions and grandfathered trails. They had no further proposed amendments leading into their loss to the Abbott government in late 2013,” the AIOFP wrote in response in its paper.

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“When Frydenberg became our Minister in mid 2014 the industry has been under continual siege.

“LIF/FASEA/ban on grandfathered legislation and ridiculous level of duplicated compliance has exponentially increased the cost of advice consumers are paying for.”

The AIOFP’s response comes as the government released a proposal paper and draft legislation of the CSLR on Friday, which would see the financial advice sector forced to pay over three-fourths of costs within the first year of the scheme.

“This government has an agenda to satisfy the banking fraternities’ needs for digital and direct services for consumers regardless of the damage to financial advisers, the wider financial services Industry and consumers themselves,” the response continued.

“Over the past five years consumers have paid over $12,000 in advice fees for unnecessary compliance costs forced onto their adviser by this government, thousands of support staff have lost their jobs, 8,000 advisers forced out of the Industry and sadly there has been over 15 suicides we know of.”

Earlier this week, the AIOFP released a video campaign aiming to “engage and enrage” the sector on the back of escalating advice fees.

AIOFP executive director Peter Johnston said the new campaign would “formally commence” the association’s political strategy to oust Coalition MPs holding marginal seats.