Minister for Finance Mathias Cormann announced the government would be making the bulk of its amendments to Labor's FOFA legislation via regulation by 1 July 2014.
However, speaking to InvestorDaily, Financial Planning Association (FPA) general manager, policy and conduct, Dante De Gori said, “everything is going to have to be legislated eventually”.
“[Making the amendments by regulation] is the quickest way to get FOFA changes ready for 1 July, which then enables everybody to operate under the new FOFA rules straight away,” said Mr De Gori.
“Secondly, it gives the government time to negotiate with the Senators in respect to passing these same changes through legislation."
It is a particularly “effective and smart” way of making the amendments, said Mr De Gori, and avoids months of uncertainty as legislation works its way through the parliament.
However, it is possible that a senator could introduce a motion to disallow the regulations, he added.
“The government’s got 15 sitting days to deal with it,” said Mr De Gori.
“That brings us to 1 September – but by September the government may already have negotiated with the independents around getting the whole legislation through anyway.”
However, there is still one big stumbling block for the government – in the shape of Clive Palmer.
Mr Palmer, whose Palmer United Party is set to hold the balance of power in the newly-formed Senate from July 1, told the Australian Financial Review on Sunday he would side with Labor and the Greens to vote against the legislation.
“What sort of an idiot tries to take away from Australians their normal rights to a fair go?” said Mr Palmer
“We’ll get rid of [the FOFA amendments]. The men and women of Australia – the pensioners and working classes – should be allowed to rely on the advice they’re given,” he said.
