FPA welcomes Senate Committee recommendations to clarify FoFA
The Financial Planning Association of Australia (FPA) today acknowledged the findings of the Senate Committee inquiry into a streamlined Future of Financial Advice (FoFA) Bill and welcomes recommendations clarifying that there is no intention to reintroduce product commissions under The General Advice exemption.
Four years after the FoFA process began under Labor, the FPA is eagerly anticipating the next phase of the FoFA which rests now with the Coalition Government and Minister for Finance Mathias Cormann.
“We now anticipate that Minister Cormann will respond to the Senate Report and execute a Bill in the true best interest of consumers, remove red tape and costly duplication and provide certainty to our profession and the wider financial services industry,” said Mark Rantall, FPA CEO.
Mr Rantall said today’s Senate Committee findings acknowledge the FPA’s concerns with the possible reintroduction on commissions and the government has now the opportunity to effect meaningful laws that protect the financial wellbeing of all Australians and banish forever the threat of commission-driven sales on their investments and superannuation.
“We look forward to the formal response by the Australian Government to the detail of the Senate Committee’s findings,” Mr Rantall said.
“We are pleased to see that the FPA submissions made to this Inquiry, particularly the FPA’s 10 point plan, found a receptive ear with the Senate Committee members as reflected in the main report as well as the dissenting report.
We look forward to the next step in the process and working with Minister Cormann and the Government to help take these recommendations into law.”