A statement by the FPA pointed to the “blunt directive” issued by ASIC to reopen compensation claims for 4,000 CBA clients who were exposed to “shoddy practice”.
FPA chief executive Mark Rantall said a “surgical cut” between advice and product sales is required.
“FOFA began as a set of ideals for the future of financial advice. But without formal moves to forever separate product from advice we would not only promote an opaque future but would have missed a chance to make historic professional and consumer-centric reforms that lead the world,” said Mr Rantall.
“FOFA is an acronym we are all familiar with. But ‘SOPA’ – or separation of product, advice – is the one to watch,” he said.
“[The final FOFA annoucement is] only 30 days away, but we are an eternity from seeing comprehensive and viable protections that offer an appropriate safe haven to investors who should expect that financial advice – not product sales – always be given in their best interest,” said Mr Rantall.
The FPA will unveil its 10-point plan to create enduring change on behalf of Australian consumers and the professional financial planners who serve them in coming days, he added.
