The Federal Government says that FOFA regulatory changes that were disallowed in the Senate last years are now off the agenda.
The Government has made comment at the annual 2015
Stockbrokers’ Association Meeting that there will be no new moves to alter FOFA amendments that were being pushed by the then Finance Minister, Senator Mathias Cormann.
The amendments to FOFA legislation have been a highly
contentious yet frustrating issue for the financial services sector.
They remained in limbo for some time until the
Federal Government attempted to rush through changes to the previous Government’s FOFA legislation last year. Opponents of the proposed changes accused the Government that such changes would water down consumer’s rights. Mark Rantall from the Financial Planning
Association said that the disallowance of the FOFA changes by the Senate, “would have a
catastrophic effect across the country and continue five years of uncertainty.”
Assistant Treasurer, Josh Frydenberg, confirmed that the only significant changes now likely to be delivered to FOFA will be bipartisan refinements to the retail/wholesale client definitions
under the Corporations Act.
Frydenberg commenting that his Government will make a handful of technical refinements to the FOFA reforms and did not outline what those refinements would entail. Frydenberg did
conceded however, “of the difficulties posed by the lack of alignment across the Corporations Act.” He said that, “it was never intended that there be different tests across different parts of the Corporations Act.”