Addressing an audience of non-institutional financial advisers at the Association of Independently Owned Financial Planners (AIOFP) national conference in Hobart yesterday, Mr Sinodinos said the federal government’s promises on amending the Future of Financial Advice reforms were its “number one” financial services policy priority.
“The message we are receiving from [Prime Minister] Tony Abbott is that the first priority is implementing our election commitments – not in four years but by the end of the year,” Mr Sinodinos said.
“We recognise that the financial services industry required change, in terms of moving the industry away from conflicted remuneration, but we also recognise that FOFA went too far.”
The Assistant Treasurer’s office is currently in “targeted consultations” with stakeholders in the financial services industry – including the AIOFP – after which time Mr Sinodinos has a very clear timeline for amendment in place.
“Immediately after [the consultation process] I will bring a package of amendments to the Cabinet before the end of the year,” Mr Sinodinos said.
“Following the Cabinet’s consideration of the the package, I will make an announcement on the government’s decision regarding enhancing the current regulatory framework,” he added.
“I want to have legislation drafted by early February, introduced to parliament in the autumn sittings and passed during the 2014 winter sittings,” he said.
This timeline will ensure that the financial services industry is provided with “certainty” in the timeliest fashion, while making good on the Coalition’s pre-election financial services agenda, as outlined in its election productivity policy paper.
“Time-sensitive amendments” will be dealt with through regulation before being “locked into legislation”, the senator and former chief of staff to Prime Minister John Howard said.
Mr Sinodinos said he had received indications from Treasury that it does not “contest” the concerns of the financial services industry on issues such as the opt-in and fee disclosure requirements.
“The government will continue to work towards restoring confidence and certainty to the industry and will update stakeholders on this process,” he said.
“We recognise the detrimental effect the reforms [in their current state] can have on industry,” said Mr Sinodinos.
