The Coalition’s victory at the federal election may have significant policy implications for the financial services industry and FOFA regulations if the new government acts on its pre-election promises.
The Coalition’s pre-election national productivity policy outlined in the Policy to Boost Productivity and Reduce Regulation document pledged to make amendments to FOFA regulations in particular to implement the 16 recommendations it made as part of the Parliamentary Joint Committee inquiry into FOFA. Included in the recommendations are: the complete removal of opt-in, as well as simplifying and streamlining annual fee disclosure requirements while improving the best interest duty and providing certainty around the provision and availability of scaled advice. The party’s document also stated that a ban on risk commissions inside super will also be refined, a general suspension on further regulation of the financial advice profession, as well as cutting red tape for small business financial advisers.
The Coalition will also amend the Labor Government’s FOFA package and industry representatives have praised the move with Brad Fox Association of Financial Advisers chief commenting that, “The AFA has a mandate to work with Government to achieve outcomes that support advisers and advice businesses in the important role they play helping to build, manage and protect the wealth of everyday Australians. The AFA is supportive of the changes to the FoFA reforms as announced by Senator Mathias Cormann and the Coalition prior to the election and will work closely with the new Government as these changes are implemented.”