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Dr. Mark Sinclair
Dr. Mark Sinclair, Mentor Education

FPA to lobby against redundancies in FoFA reforms.

10 December 2013
Mark Rantall FPA chief executive

The Financial Planning Association (FPA) will lobby to remove the opt-in requirement and other “redundancies” out of the FoFA reforms labeling the opt-in requirement as “an overkill”.

The FPA chief executive Mark Rantall has said that “opt-in is redundant in a fee-for-service world where advisers have a best interest duty and where fee disclosure statements are required as soon as the government issues its proposal to amend the legislation.”

Rantall added that “to add that additional piece of red tape on advisers is inappropriate when they’re already drowning on a tsunami of legislative change” and “consumers can now can take control of the transaction because they’re paying fees, they can take these fees off any time, there’s open and transparent disclosure from advisers to clients about the fees and there is a legislative requirement to act in the best interest of the client.”

Rantall also outlined some of the changes that the FPA will be asking of the government in order to streamline fee disclosure statements (FDS), these include: asking that the FDS to be prospective and not retrospective, to add more flexibility around the development of the documents, to eliminate the 30-day limit requirement and to introduce the possibility to reset the disclosure date.

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