20 Oct Australian Critics Express Issues Over FoFA
A raft of criticism has been directed towards the Australian Future of Financial Advice (FoFA) Bill in an echo of the criticism that the RDR bill in the UK has seen. The FoFA, which is Australia's attempt to reform their own retail investment distribution market, will apparently decimate the number of financial advisers in the country in addition to alienating many clients.
The RDR has faced similar criticism from IFAs, with both bills containing similar policies.
The FoFA will see a ban on commission in addition to the formalisation of the IFAs duty to act in the best interests of their clients.
The Association of Financial Advisers (AFA) claimed that, according to independent research, such measures will see a halving in the number of advisers in the industry by 2024.
"It is almost inconceivable in the 21st Century that a government would put forward legislation that intentionally annihilates the small business sector of an industry, while pandering to another sector and then dress it up as acting in the best interests of consumers," AFA chief executive Richard Klipin said.
"The AFA regards this legislation as a significant threat to small business advisers and the millions of clients they serve."