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FSC considers Treasury submission: claims

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By Reporter
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3 minute read

It is believed the FSC is engaging product providers with a view to lodging a submission with Treasury over FoFA reforms.

The Financial Services Council (FSC) is understood to be working through the Labor government's future of financial advice (FoFA) reforms with a view to lodging a submission with Treasury.

It is believed the FSC intends to consult with a number of the industry's product providers over their reform concerns before filing a submission.

It is not yet known when the association intends to submit its concerns in writing.

FSC chief executive John Brogden was unavailable for comment.

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Since the release of the FoFA reforms earlier this year, the biggest concern for the platform industry has been the government's view of costs and fees, particularly volume bonuses, a number of participants have said.

"The big one is obviously about payments and where they sit, and there hasn't been a re-engagement with Treasury yet. So once the election was announced, all the discussions had stopped," Colonial First State distribution general manager Marianne Perkovic said.

"So for us it's just, I think through the FSC and groups like ours, about kind of merging together to come and talk."

As well as payment concerns, BT Wrap head of product and strategy Craig Lawrenson said there needs to be an education focus on service versus product.

"[It's also about] education, really focusing on service versus product and explaining the nature of the payments and what they're for, and that they are different to your sort of '10 per cent upfront commission for flogging products' sort of payments," Lawrenson said.

Lawrenson said that, in general, the FSC is working together with all the platform providers.

The Labor government released its FoFA reforms in April this year.