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Associations prepare for consultation

A number of financial services industry bodies have welcomed the release of FOFA amendment regulations, pledging to make formal submissions to the public consultation.

Responding to yesterday’s release of draft regulations and legislation making good on the promise to amend FOFA, the Financial Planning Association said it commended the government for taking burdens into account.

“We are pleased that the government has progressed with its promised changes to ensure a more workable FOFA framework for financial planners and their clients,” FPA chief executive Mark Rantall said.

“The FPA has long advocated for a more sensible, workable and practical FOFA legislation. We are pleased that the government has therefore committed to consulting on the legal amendments necessary to fix these issues as a matter of urgency.”

The Association of Financial Advisers issued a statement welcoming the move, with AFA CEO Brad Fox pledging to consult with members through its FOFA implementation working group before lodging an official submission.

“We will make further comment after a comprehensive review has been undertaken,” he said.

The Institute of Public Accountants also welcomed the announcement, which IPA CEO Andrew Conway, who is also chair of the Council of Small Business of Australia described as an outcome providing “flexibility to accountants in their role of trusted advisers to provide scaled advice”.

Meanwhile, Industry Super Australia called for the government to conduct a “thorough assessment” of the impact of the proposed amendments on “consumers and national savings”.

However, federal Treasury has already released a regulatory impact statement outlining its conclusion that the amendments will not have any adverse impact on Australian consumers.