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FPA submits FOFA recommendations

The Financial Planning Association has submitted a number of recommendations to Treasury, identifying “some areas for improvement” in the proposed FOFA amendments.

In a statement issued this morning, FPA general manager, policy and conduct, Dante De Gori said that while the association is “broadly supportive of the proposed amendments”, there are a number of “workable alternatives” the government should consider.

Specifically, the FPA has outlined it does not support “commissions via this proposed amendment” relating to general advice, and its view that “greater tightening is required for the appropriate delivery of scaled advice”.

The FPA also declared its support for the amendments to the best interests duty and repeal of opt-in as well as introduction of prospective fee disclosure statements.

“The FPA has recommended stronger consumer protection mechanisms by way of removal of unnecessary proposed Corporations Law amendments and clearer guidelines pertaining to the treatment of general advice exemptions, while banning conflicted remuneration for complex financial products,” the statement said.