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AFA warns advisers to 'brace for mistruths'

The AFA has welcomed the government’s FOFA announcement but is cautioning advisers that the industry super lobby and other political opponents are unlikely to admit defeat.

AFA chief executive Brad Fox responded to this morning’s announcement by welcoming the clarity on grandfathering and the best interest duty in particular.

However, he also predicted that the heated debate in recent months – and years – will likely continue unabated.

“We have seen blatant mistruths, as recently as this week, on the FOFA issues and it is likely that we will see them again now,” he said.

“The industry super lobby will again attack these reforms because in most cases they do not benefit when members of industry super funds see a financial adviser.”

Mr Fox also particularly welcomed the extension of the notice period to provide fee disclosure statements from 30 to 60 days – an initiative spearheaded by AFA chief operating officer Phil Anderson.

“The AFA raised with the government the need to amend this on the basis that it will increase the contact between advisers and their clients, as many advisers will provide the FDS in face-to-face reviews with their clients,” he said.