The federal government needs to consult with the wider financial services industry before making changes to the FOFA regulations that could create further red tape and consumer confusion, according to Chan & Naylor.
Chan & Naylor wealth planning partner David Hasib has issued a statement urging the government and politicians to consult more widely with the financial service industry, arguing that the original intent of FOFA has been lost.
“Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform,” Mr Hasib said.
“Before any further changes are made to FOFA, the Palmer United Party and the federal government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long standing issues."
Mr Hasib said if FOFA were to pass into law in its current form there will be increased red tape, further consumer confusion, and it will be harder for people to afford quality advice.
“The Palmer United Party’s proposed amendments barely scratch the surface and don’t deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years,” Mr Hasib said.
“This is driven by remuneration and right now there are simply are too many noses, with vested interests, in Australia’s financial services industry trough."
“If we can remove the inherent, product selling culture of the 80s and 90s, then it will be to the benefit of all Australians,” Mr Hasib added.
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