Facts on FoFA amendments reveal empty product rhetoric and political posturing


Rhetoric and unnecessary scare mongering are clouding the facts about proposed amendments to the best interest duty component of the Future of Financial Advice (FoFA) legislation.

“Australian consumers have nothing to fear from proposed changes to remove sub-section (g) (section 961(B)(2) (g) of FoFA legislation,” says Financial Planning Association of Australia CEO Mark Rantall.

“We are witnessing an extraordinary effort by product providers and those who represent them to build a political position – based on flimsy arguments – in defence of a redundant section of FoFA pertaining to the best interests duty.

“In this case the facts really do speak for themselves. Consumers have nothing to fear from the proposed amendments. We reiterate the facts here, in chronological order and on the record, for all to see,” Mr Rantall said.

THE FACTS ABOUT SUB-SECTION (g):

The FPA will continue its mission to educate consumers about the benefits of professional financial advice, and the professional difference consumers can benefit from when choosing a certified financial planning professional, operating under a world’s-best Code – the FPA’s Code of Professional Practice.

“The number one principle in that Code has always been that FPA members have an obligation to place the client’s interests first,” Mr Rantall concluded.