Chan & Naylor wealth planning partner David Hasib said before any changes are made to the FOFA regulations, the federal government should consult with the wider financial services industry to better understand its “long-standing issues”.
“Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform,” said Mr Hasib.
“Before any further changes are made to FOFA, the Palmer United Party and the federal government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long-standing issues,” he said.
Mr Hasib said if FOFA were to pass into law in its current form, then it will lead to a number of unsettling outcomes, including increased red tape and further consumer confusion, and will make it harder for people to afford quality advice.
“The Palmer United Party’s proposed amendments barely scratch the surface and don’t deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years,” said Mr Hasib.
“This is driven by remuneration and right now there are simply too many noses, with vested interests, in Australia’s financial services industry trough,” he said.
“If we can remove the inherent, product-selling culture of the ’80s and ’90s, then it will be to the benefit of all Australians.”
