Shadow minister for financial services and superannuation Mathias Cormann told InvestorDaily the Future of Financial Advice (FOFA) implementation date – currently Monday 1 July – should be postponed by 12 months, in the clearest indication of financial services policy under an Abbott government to date.
"The implementation of FOFA and Stronger Super clearly should be extended by 12 months,” Senator Cormann said.
"The government's disjointed and chaotic handling of complex FOFA and Stronger Super legislation means that financial services businesses across Australia will not be in a position to comply from next Monday.
"It is highly undesirable to have large numbers of financial services providers forced into a situation where they have no chance but to be non-compliant.
Senator Cormann called for the government to provide immediate certainty on this and “announce and initiate an extension of the implementation date before parliament rises tomorrow”.
The comments follow calls from the Financial Services Council (FSC) to have the reform package postponed.
FSC chief executive John Brogden said his organisation has written to new prime minister Kevin Rudd to request a 12-month extension to the implementation of FOFA and Stronger Super changes.
The FSC said part of the reason it had requested an extension was the late introduction of key parts of the MySuper regime on 24 June, and the fact the industry was faced with implementing the wide ranging reforms without a transition period.
