Financial advisers plan to maintain political momentum by building on relationships formed in the run-up to the Future of Financial Advice (FOFA) reforms.
“The process in some respects is just starting because there’s a long way to go until we know what all the implications are both from the regulations and from ASIC, and what implications or problems or unintended consequences are likely to arise once we go into much more detail,” Professional Services Holdings group managing director Grahame Evans said.
“This is an ongoing situation, from our perspective.”
IOOF head of wealth management Michael Carter said the political process had helped politicians on all sides of the spectrum better understand the financial advice industry.
“We would hope to progress positive change initiatives that benefit advice outcomes for clients, including increased take-up of advice within the marketplace and advancing unresolved issues, such as the tax deductibility of advice for consumers, amongst other things,” he said.
The lower house of Parliament approved the Corporations Amendment (Future of Financial Advice) Bill 2011 late last week, including nearly 20 amendments inserted by Financial Services Minister Bill Shorten.
Industry participants said they assumed the draft laws would pass Senate.
However, Asteron Life executive general manager Jordan Hawke said he was looking further out.
“Even if certain things will be agreed in Parliament, there will be, ultimately, a change in government and we need to ensure that we keep what’s important front of mind,” Hawke said.
“This is a debate that needs to continue, regardless of what goes into legislation, it’s important that we continue to represent the principles of giving Australians quality advice.
Hawke commended assistant treasury spokesman for the opposition Mathias Cormann for supporting the industry.
Cormann last week vowed to ‘fix Labor’s FOFA mess’ if the Coalition wins government.
“Knowing Mathias is true to label, a change of government should mean a reversal of these measures that have been put in by Shorten,” Hawke said.
