The proposed changes to FOFA would include the “relaxing” of part of the regime that requires financial advisers to act in their clients’ best interest, Taxpayers Australia stated.
“That the financial planning industry is looking at a future without a robust best interests duty puts at real risk the regard that finance professionals would hope to earn from consumers, and will be a retrograde step for [the] industry,” the organisation also said.
By going ahead with these proposals, Assistant Treasurer Arthur Sinodinos would be “laying the groundwork for the next financial miss-selling scandal”, said Taxpayers Australia spokesman Mark Chapman
“These proposals aren’t about cutting waste or eliminating red tape, they’re about removing the fundamental right of consumers not to be ripped off. There is no possible upside to consumers in these proposals and plenty of downsides,” he said.
“The basic right to be properly advised and to be automatically told how much of your investment is going into your chosen product and how much into the pocket of your adviser in fees and charges really shouldn’t be up for discussion in 2014,” he added.
