The FOFA amendments tabled in parliament on Wednesday were not the perfect outcome for the Financial Planning Association (FPA), despite the majority of the reforms being welcomed by the association.
“The perfect outcome would have been an explicit banning of investments and commissions in superannuation on general advice,” FPA general manager, policy and conduct, Dante De Gori told ifa.
“Failing that – which is part of what they have announced – looking at excluding as part of the exemption complex products in superannuation,” Mr De Gori said.
On Wednesday the government announced that ASIC would be investigating the impact of general advice exemption on complex products.
“Based on that report we will see what this change actually does,” Mr De Gori said.
“The government has tightened it, but will see in a few months’ time whether there is any issue,” he said.
“It would be great to have some evidence to show that the limited carve-out they have provided has been enough, but if it hasn’t, then it substantiates our position all along and the government will then be in a position where they have no other option but to act,” he said.
After Senator Arthur Sinodinos stepped down from his position as assistant treasurer on Wednesday, it is now the job of his replacement - Senator - Cormann to get the Bill passed through parliament
Mr De Gori said he has full faith in Senator Cormann, who he noted was the original architect of the reforms which the FPA will be eying closely.
“We will be reviewing the legislation quite thoroughly,” he said.
“There has obviously been recent changes an so we will look at that thoroughly and be guided by the parliamentary process in terms of how and when we can feed into any possible amendments if need be.”
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