The Association of Financial Advisers (AFA) has again questioned the independence of the Future of Financial Advice (FOFA) legislation being proposed by the Federal Government.

AFA CEO Richard Klipin says the FOFA draft bill will only benefit the major banks and the industry superannuation funds, not consumers. 

“While the FOFA reforms were purportedly designed to protect consumers, the reality is the only winners will be industry funds and the big end of town,” he said.

“The Government’s agenda is now on show for all to see, and I call on Financial Services Minister Bill Shorten to provide the evidence and modelling that back up his claims [that] the FOFA reforms will provide a ‘growth strategy’ for the industry.”

The Government’s claim that the opt-in proposal under FOFA will only cost advisers $11 a client has again been attacked by the AFA.

Mr Klipin says the figure was produced by actuaries Rice Warner on behalf of the Industry Super Network (ISN) and also questioned the independence of the legislation.

“The use of the research in the Government’s FOFA media release, without attribution to ISN, is appalling,” he said. “It is misleading and partisan.” 

He says the proposed takeover of the Count dealer group by Commonwealth Bank is an example of the uncertainty the legislation has created in the financial advice industry. It is one of the unintended consequences of FOFA and goes against the interests of ordinary Australians.

“We believe that less competition in the industry and greater consolidation spells fewer choices for Australian consumers,” he said.

“We believe the sale of the largest independently owned network of financial planning accountants and advisers in the country (Count) to one of the big listed players may be a sign of things to come.”