The Association of Financial Advisers has spoken out against organisations criticising the FOFA amendments, saying they have “vested interest” and “are not acting in the best interests of all Australians”.
The AFA said that many comments have come from those with a stake in the superannuation savings of baby boomers and are putting retirement incomes at risk by undermining confidence in financial advice.
“We have seen gross inaccuracies being reported as facts across a wide range of publications and media programs, so the question has to be asked: how are these actions, which undermine the confidence of baby boomers in personal financial advice, in the best interests of Australia?” Mr Fox said.
“As law, the amendments will give clarity so that every financial advice client, along with anyone else who wants to scrutinise the advice given to the client, will be clear on whether the adviser has or has not met this robust and comprehensive duty to act in the client’s best interests.
“It will give consumers increased confidence to trust the financial advice they receive.”
Mr Fox said that without the amendments, the ambiguity surrounding the best interest duty would need to be tested in court, leaving “a cloud hanging over” the industry for years.
He added that while many commenters, particularly Industry Super Australia, have called for transparency in the industry, the group has not made its submission to the government on the FOFA amendments publicly available.
Mr Fox said the amendments will make it “easier and less expensive” to get advice, but that “some lobby groups may not want this outcome”.
The regulator has banned a financial adviser for five years and cancelled his firm’s AFSL. The Australian Securities ...
The lack of visibility and consistent regulatory instability are stopping prospective talent from entering the advice ...
The introduction of Rhombus Advisory has caused a shift in the top advice licensees as Insignia separates its advice ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin