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Bowen's FoFA fears "complete rubbish": AFA

Bowen's FoFA fears "complete rubbish": AFA
The Association of Financial Advisers (AFA) has slammed comments by Shadow Treasurer Chris Bowen that proposed amendments to the Future of Financial Advice (FoFA) regulation may make Storm or Trio Capital cases "more likely" as "complete rubbish."

"The ALP has made it very clear and Chris Bowen said it yesterday that they will oppose these amendments; there is no question that linking these amendments to things like Storm is just complete rubbish," AFA chief operating officer Phil Anderson said at a Sydney roadshow today.

Bowen made the comments on ABC's Lateline program last night, in line with Assistant Treasurer Arthur Sinodinos, who recently told Financial Standard that another collapse like Storm could not be ruled out.

"My dilemma on that is if I sit here as Minister for Financial Services and say that there will never be another financial crisis again, there will never be another Storm, Westpoint or Opes Prime I think I'm setting myself up for a fall because you can't account for all circumstances," Sinodinos told Financial Standard.

Anderson also responded to comments from Industry Super Australia (ISA) chief executive David Whiteley saying that changes on the best interest obligation were "an extraordinary and unseemly scramble to" wind the reforms back."

"The recommendations that we see today are the recommendations that we saw 24 months ago, how is that an extraordinary and unseemly scramble?" he said.

Anderson argued that exempting general advisers from the ban on conflicted remuneration "is not something that's important to financial advisers because if you have a broad APL you can't have a discussion with your client and end up with a recommendation via providing general advice."

"Licensees would not support it and it would not be possible to do it; but if you have only one product and your client knows what they need, then you might be able to do it via general advice.

"Self-employed and independent advisers cannot be under this exemption."

During his presentation, Anderson analysed media coverage of the proposed amendments and concluded that "trade media coverage was mostly positive, with some raising issues around professionalism" and "mainstream media has been quite negative."

While highlighting the "positive" and "negative" media coverage, he then requested "some balance in media reports.

Author: Laura Millan
Source: Financial


Last modified onThursday, 13 February 2014 00:55

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