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Abbott pledges FOFA shake-up

Opposition leader Tony Abbott has unveiled the Coalition’s pre-election productivity policy, vowing to amend FOFA and reduce compliance burdens for “small business financial advisers”.

The Coalition’s Policy to Boost Productivity and Reduce Regulation, released by the Liberal and National parties yesterday, contained plans to repeal a number of flagship Labor reforms, including a pledge to make amendments to the Future of Financial Advice legislation.

“According to the Insurance Council of Australia, the Labor Government’s FOFA package will cost an estimated $700 million to implement and impose a $375 million compliance burden on the financial services industry each year,” the policy document states.

“The Coalition will amend the legislation to reduce compliance costs for small business financial advisers and consumers who access financial advice.”

The document pledges to implement a range of amendments to the legislation including the “complete removal of Opt-In” and “simplification and streamlining of the additional annual fee disclosure requirements”.