Association of Financial Advisers (AFA) CEO Richard Klipin says he hasn’t given up the fight against the Future of Financial Advice (FOFA) reforms.

“It is now a political debate and that is a long game,” he told insuranceNEWS.com.au. “We are still having conversations and emails daily to explain the problems to MPs.”

Mr Klipin is urging AFA members to continue to talk to their local politicians to “maintain the rage”.

“This is a long game like in chess and it will be a long-drawn out game,” he said. “We are arguing logic and reason against elements of FOFA.”

Mr Klipin says Assistant Treasurer Bill Shorten is aware of the sector’s problems, including underinsurance and the lack of people seeking financial advice, but the FOFA reforms do little to address these issues.

“Mr Shorten indicated that he is not convinced that opt-in will increase the cost of and access to advice, despite being presented with solid, research-based evidence,” Mr Klipin said.

“He also indicated that he is not convinced that a ban on commissions within superannuation will exacerbate Australia’s underinsurance problem, once again expressing scepticism about industry insights.”

He has called on the Federal Government to produce independent evidence showing how FOFA will benefit consumers by impeding access to advice and increasing red tape.

“Where is the evidence that opt-in and a ban on commissions within superannuation address the problems Mr Shorten identified?” Mr Klipin said.

“The Government has not modelled a case for how they will benefit consumers. Mr Shorten said we haven’t convinced him yet. Well, he hasn’t convinced us either.

“AFA members would like to be part of a sensible solution that creates a constructive pathway to change. Their livelihoods depend on it.

“Our door is open to work with the Government to build a consensus for reform.”

The draft FOFA legislation is expected to be unveiled by Mr Shorten next month.