Industry underestimated the enormity of FoFA

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Financial Services Council (FSC) chief executive wrote to newly appointed Prime Minister Kevin Rudd, Financial Services Minister Bill Shorten and Treasurer Chris Bowen on Thursday morning to ask that the July 1 implementation of the Future of Financial Advice (FoFA) and Stronger Super reforms be postponed for 12 months. With the change of Prime Minister and Treasurer, Brogden said it was appropriate to raise the question.

AFA CEO Brad Fox says he would welcome any sort of delay, though 12 months would be very generous.

“I would think that if it was three months, we’d be having the same conversation. It would be improved, but would have the same elements. I think six months would be the minimum to achieve what we would be seeking by getting a delay.”

It’s not only advisers that need to prepare, but the whole industry, and Fox says ASIC and Treasury have their own dilemmas to sort through. “We’re still waiting on guidance on things like conflicted remuneration, grandfathering and corporate super. This stuff starts on Monday and we don’t have the final guidance yet.”

He says it is not for lack of trying, but that everyone has simply underestimated the enormity of the change. And while he agrees that ASIC will have to improve their act to get guidance out, Fox says it takes time to gather the views of so many different parties, consult, and put them into the right framework.

  • James Smith on 1/07/2013 11:14:56 AM

    Leadership Zone's response is a good example of how this FOFA debate has gone off the rails. The FOFA requirement is a fee disclosure DOCUMENT and LEGISLATIVE REQUIREMENT. It is not a measure to evaluate the health of a business, the ethics of the adviser nor the satisfaction of the client. The practicality and cost of meeting the legislative requirement is what is being debated. Our clients will determine our future success not the regulations.

  • Merv Gay on 28/06/2013 1:09:36 PM

    Gee - I'm glad I'm not a client of Mr Leadership Free Zone. No wonder he/she won't use their real name..Sad type........

  • Leadership Free Zone on 28/06/2013 12:29:33 PM

    Reminds me of the old saying we reap what we sow.... The date is the date so suck it up and get on with it. We've built crap businesses and got lazy along the way and now we start to complain about the changes forced on us. Have a look in the mirror and staring back at you will be the reason why.

  • Fedup on 28/06/2013 10:26:22 AM

    I think the letter to The Prime Minister - Bill Short on, is a great idea. Bill had no idea what he was doing to the industry. If he had known he wouldnt have done it!!! Prime Minister Short on will jump on it right now. Not!

  • Concerned on 28/06/2013 9:50:22 AM

    Many, advisers and product providers didn't know that the FDS started from the 1st July 2012. Many product providers don't have the capabilities in place to provide the fee information needed, they may have by mid July??!! We now have had to manually go through all Revenue Statements to add up each clients fees to be ready for the first batch of FDS. It is a shambles!! Are we a Profession?

  • Merv Gay on 28/06/2013 9:41:53 AM

    Well - Duh!!! I said that six motnhs ago there was absolutely no hope of implementing this useless garbage. All FDS's do is clog the nation's letter boxes with more rubbish that people won't read. A complete waste of time, and guess where the cost of implementation comes from...Westpac has spent $ 80M on this...What a waste. Merv Gay

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