The FPA has put forward arguments to seperate hearings in Canberra that consumers’ best interests must determine the timing of Future of Financial Advice (FOFA) reforms and the concessional contribution caps should not include SG payments.
The industry body appeared at two bodies yesterday in Canberra to express its view that consumers, not political agendas, must be central to Federal Government decisions.
FPA general manager policy and government relations Dante De Gori told the Senate Economics Committee (SEC) the association supported a one-year transition and implementation of the Future of Financial Advice (FOFA) reforms.
Meanwhile FPA chief executive Mark Rantall told the superannuation roundtable chaired by Minister for Superannuation and Financial Services, Bill Shorten, that super guarantee contributions should be removed from the concessional contribution cap.
Rantall also said the contribution cap for over-50s should continue indefinitely at $50,000 with a provision for indexation – beginning from July 1 this year – on both the $25,000 and $50,000 caps.
At the SEC, De Gori said the FPA supported most FOFA reforms, “the intent behind the reforms, and the importance of improving transparency of, and access to, financial advice for all Australians”.
However, the reforms had to be “implemented accurately, while ensuring (they) are workable” and so the FPA urged a one-year transition to “allow all financial planners the time needed to implement these reforms in a transparent and efficient way”.
The original intent of the FOFA reforms should be adhered to, ensuring that financial advice is in the client’s best interests: distortions to remuneration, which misalign the best interests of the client and the adviser, should be minimised.
As well in minimising these distortions financial advice should not be put out of reach of those who would benefit from it. De Gori said.
