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FoFA disallowance slammed

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Julia Corderoy | 21 Nov 2014, 08:42 AM Agree 0
The successful disallowance of the Federal Government’s amendments to wind-back the original Labor Government’s FoFA reforms has been slammed as having the potential to significantly harm the financial services industry and its consumers
  • QEDRisk | 21 Nov 2014, 09:22 AM Agree 0
    What an absolute load of toss, the whole notion that all legislation is automatically just bad. For the most part FoFA requirements actually assist advisers to understand and comply with what are their existing obligations under the Corporations Act. Furthermore if you have the right software to automate the little bit of extra paperwork involved it will only add mere minutes to your processes. Oh but that would require advisers to get out of the dark ages wouldn't it.
  • Vic Regional Broker | 21 Nov 2014, 09:41 AM Agree 0
    This is self serving comments by a banker's representative. It means the banks will now have to be as compliant as the rest of the industry, stop carrying on! Get the technology right as the mortgage brokers have had to it is not difficult. Can a teller provide sound financial or credit advice over the counter, NO !
  • William | 21 Nov 2014, 09:42 AM Agree 0
    It would seem that Labor's legislation does not go far enough. According to news reports, the big four banks and a few large insurers have a stranglehold on the financial planning industry. A real step forward would be to force these organisations to divest themselves of these activities. Unfortunately that seems unlikely as federal politicians seem to be in awe of the banks!
  • Jason | 21 Nov 2014, 09:49 AM Agree 0
    Thanks for your input QED. I suggest you come see what it's actually like to be an adviser and understand the business before you just slam the industry. Opt in is going to require clients agreeing to continuing service. If a client is away on holiday and don't return the form, is the public going to be happy that their adviser did nothing in the case of a falling market, simply because they weren't allowed to?

    Largely speaking, FOFA has simply increased the cost of advice for small businesses, which clients won't pay, and then the media complaints will continue that all planners are bank employed or aligned.
  • Michael K | 21 Nov 2014, 09:59 AM Agree 0
    @QEDRisk
    "absolute load of toss" = "For the most part FoFA requirements actually assist advisers"
  • Ed Ridge | 21 Nov 2014, 10:03 AM Agree 0
    Jason, what makes you think that QED has not been or is not an adviser? If a client is away on holiday and don't return the form, is the public going to be happy that their adviser did nothing in the case of a falling market, simply because they weren't allowed to?" Ah I think the consumer taking ownership of their situation is a great thing we can't protect everyone from themselves. Let's face it the biggest thing that the banks are hating about this is all the money they gave to the coalition hasn't resulted in the outcome they had bought...sorry hoped for!!
  • Joe Broker | 21 Nov 2014, 02:15 PM Agree 0
    Ed Ridge, you are absolutely right about "... the biggest thing that the banks are hating about this is all the money they gave to the coalition hasn't resulted in the outcome they had bought...sorry hoped for!!" Although, I doubt they're that bothered by the money they "donated", insomuch as the degree of control they hate to lose.
  • Incognito | 21 Nov 2014, 03:47 PM Agree 0
    This whole FoFA episode does the Liberal party brand a huge dis-service.

    It's breathtaking in it's badness. FFs get advisors locked in on the client's side.

    Banks, lift your snouts out of the damn trough.
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