The Association of Financial Advisers (AFA) has raised a number of concerns with the approach taken by the Australian Securities & Investments Commission (ASIC) and Treasury in recently released guidance on conflicted remuneration under FOFA.
AFA chief executive Brad Fox said that while the issuance of guidance did provide some clarity, he is not convinced the news has been positive for advisers.
“Following our initial read of the guidelines, we still harbour significant concerns about the ability of the financial advice industry to retain appropriate incentive schemes to promote both good advice and adviser productivity,” Fox said in a statement released today.
“There remain a number of areas of uncertainty, where it will be difficult for the industry to develop firm implementation plans,” he said.
At the same time, Fox conceded ASIC had released a “very complex piece of guidance,” and that it will “take a little time to fully analyse and comprehend the implications.”
This period of ambiguity and consultation may “drive further costs and uncertainty” Fox warned.
He said the AFA looks forward to further consultation with ASIC to fully understand the implications of the regulatory guide, and to the work of the upcoming AFA FOFA Working Group.
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