The Association of Financial Advisers (AFA) is continuing its campaign to amend the Future of Financial Advice (FOFA) legislation by writing to all senators and federal MPs.

The AFA’s letter lists five concerns about the two FOFA bills and describe what amendments it wants.

Top of the list is the removal of retrospective fee disclosure requirements. The AFA argues it would be a huge cost burden to the financial services industry, saying the requirement infringes existing contracts between advisers and their clients.

Not surprisingly the AFA also wants the opt-in proposal removed.

It cites increased costs of about $120 per client a year, and says the requirement will create unnecessary red tape.

The third issue raised by the AFA relates to improving the clarity of the best interest duty, saying the current wording in the bill creates uncertainty and will need to be tested in the courts.

“Uncertainty with respect to the best interests duty is likely to result in an increase in professional indemnity premiums,” the letter says.

The fourth issue centres on the ban on conflicted remuneration and concern that it could be applied retrospectively.

The AFA argues the transitional arrangements for FOFA fail to confirm government assurances the legislation will not be applied retrospectively.

The letter says the uncertainty of the transitional arrangements will affect the value of adviser businesses that are being sold.

The final issue calls for delaying the July 1 implementation of the legislation until the industry is ready. The AFA is proposing July 1 next year as a more suitable date.

It says the July 1 2012 deadline is now impossible to meet and without a delay the outcomes for consumers will be “sub-optimal”.

AFA CEO Richard Klipin says the association will support legislation that improves transparency around advice and encourages more people to see an adviser.

“We believe the draft FOFA legislation, as it currently stands, fails on both these counts.”