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FOFA causing havoc, says business broker

The fee disclosure requirements of the Future of Financial Advice reforms are hindering the movement of clients to a fee-for-service model, says an industry M&A consultant.

In a statement issued yesterday, Radar Results principal John Birt, a business broker specialising in financial planning practices, said in practice the FOFA reforms – and FDS requirements in particular – are running counter to their original intention.

“FOFA was introduced to give more Australians better advice at a lower cost,” he said.

“Some aspects of FOFA are doing the opposite; stopping planners from moving some clients from a commission system to a fee arrangement, basically to save the planner from more 'paperwork' and responsibility.”

The statement also announced that Radar Results will be a sponsor of the 2013 Financial Planning Association conference in October.