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The Senate today has voted against the disallowance motion relating to the Future of Financial Advice (FoFA) regulations.
The Financial Planning Association of Australia (FPA) welcomes this outcome, arising from discussions with the Palmer United Party.
Mark Rantall, FPA CEO, said: “We fought hard to ensure there were no loopholes for re-introduction of commissions on superannuation and investments. The government listened and we’re pleased that’s ratified today. The regulations will maintain consumer protections and ensure no commissions are re-introduced for general advice.”
According to Mr Rantall, the regulations deliver on the government’s promise to amend the FoFA laws by addressing the grandfathering arrangements and providing certainty for financial planners who want to change licensees and sell their financial planning businesses.
The changes will also include removing retrospective fee disclosure and opt-in, which will provide significant cost savings for financial planners and their clients.
“We welcome passage of the regulations through the Senate today and acknowledge the pragmatic approach taken by the Palmer United Party and the Coalition to give certainty to financial planners and clients.
“We will digest the detail behind the regulatory changes occurring in 90 days and stand ready to assist the government in implementing any changes for financial planners,” Mr Rantall said.