The former national president of the Association of Financial Advisers (AFA) has expressed his concerns over the government's Future of Financial Advice (FOFA) reforms in letters to ASIC and political heavyweights.
In letters to Financial Services and Superannuation Minister Bill Shorten, ASIC chair Greg Medcraft and opposition finance spokesman Joe Hockey, AFA member and Joe Nowak Financial Services principal Joe Nowak raised concerns over the government's ban on risk commissions inside superannuation and opt-in, pushing for the overturning of both reforms.
In his letter to Shorten, Nowak urged him to revisit and overturn a number of FOFA decisions.
He said the three main areas of concern were the commission ban on insurance, the opt-in proposal and the effect the reforms would have on advice businesses.
"I urge you in conclusion to revisit the proposals and overturn the two issues of commission on risk in super and recognise that two years is far too short a time to be mandated," he said.
In his letter to Medcraft, Nowak called on the ASIC chair to use his new position to "back the good work" being done by financial advisers in Australia.
"Greg, I hope with your leadership skills and knowledge that you back the good work being done in Australia," he said.
"Greg, I am sick and tired of union and industry fund bashing of advisers for political gain and contesting the financial purse of this country and financial institutions. I look forward to working with you and ASIC for a positive outcome for all players, as I feel the Australian public deserves."
In his letter to Hockey, Nowak voiced his concerns over Shorten's "links" to the industry funds.
"He [Shorten] needs to be accountable for his FOFA becoming a political junket instead of good policy reform being consumer orientated," he said.
"Greg Medcraft, the new ASIC chair, has a five-year appointment. Although I have congratulated him and tried to work with him, I have grave concerns for his attitude towards advisers."
