Industry Super Australia has called on the Senate to disallow the FOFA regulations which took effect on July 1, pointing to a number of 'loopholes' in the new rules.
The industry fund lobby group took the opportunity to challenge a number of claims made by the Financial Services Council (FSC) and the Association of Financial Advisers (AFA) in response to the ISA's FOFA document, Commissions by another name.
The ISA claimed that the FSC and the AFA "did not dispute" the ISA's analysis when it came to a number of 'loopholes' within the FOFA regulations relating to the general advice exemption, commissions on execution services, asset-based fees, 'balanced scorecards', the extension of grandfathering, and commissions in pension products.
In addition, the ISA said the FSC and the AFA had contradicted each other on a number of points.
"Even those supporting the dilution of financial advice laws have divergent views on the loopholes," the ISA said.
"The banks' efforts to water down consumer protections in financial advice is likely to place at risk Australians' super nest-eggs to shadow commissions and conflicted advice.
"Industry Super Funds, with over five million members, trusts that the Australian Senate will disallow the regulations that will reduce consumer protections in financial advice," the ISA said.
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