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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- 15 Nov 2018ASIC flexes its muscles at independent advisersBy James Mitchell
- 15 Nov 2018FPA hands down $50,000 fine on Sam HendersonBy Adrian Flores
- 15 Nov 2018Adviser reviews critical to client retentionBy Adrian Flores
- 14 Nov 2018ASIC bans financial services representativeBy Eliot Hastie
- 14 Nov 2018Fintech should make advice ‘enjoyable’By Adrian Flores
- view all