Speaking at the ASIC Annual Forum in Sydney yesterday, Mr Silk said the Labor government’s “tortuously negotiated compromise on FOFA” strikes a better compromise.
“I think it is a widespread campaign that some elements of the roll-back are tilting the balance too much in the direction of providers of advice and too far away from the interests of consumers of advice,” he said.
“I hope the government is listening to some of that and will try and strike a reasonable balance because, of course, it is not a black and white situation.”
Conversely, Financial Services Council chief executive John Brogden – a fellow panellist at yesterday’s ASIC Forum – sees no downside in the delay.
“I assume the government’s decision is in part because Matthias Cormann is in the role,” Mr Brogden said.
“I don’t see any downside to making sure the legislation regulations are fully understood before they are received,” he said.
Financial Planning Association of Australia chief executive Mark Rantall said yesterday’s ‘good faith’ decision to place on hold the introduction of regulatory amendments to FOFA legislation is a welcome initiative.
“FPA applauds Finance Minister Matthias Cormann for taking further time to properly investigate changes that would otherwise have been introduced as regulatory reform this week,” Mr Rantall said.
“FPA fundamentally supports the original intent of the Future of Financial Advice (FoFA) reforms based on sensible policy alignment, removal of unnecessary red tape and maintenance of consumer protection,” he said.
“We welcome the decision by Minister Cormann and look forward to continuing our constructive discussions to find practical solutions to these amendments.”
Lets cut to the chase-Trailing commissions are detested by most people. All advice will be suss until they are illegal.
One thing I hope is cleared up if any of these so called ‘reforms’ – more like drastic changes – go ahead is how will consumers be able to distinguish general advice from personal advice? Who will draw the line? Will it be left to the planner or product provider? The consumer will hear ‘advice’ and be none the wiser? I can see court cases galore down the track determining what sort of advice was given and whether commissions were allowed. Yet another lawyer’s picnic in the making.