Industry bodies have largely welcomed proposed changes to the Future of Financial Advice (FOFA) legislation – but Industry Super Australia (ISA) has sounded a note of caution.

ISA CEO David Whiteley says the Federal Government must thoroughly assess the impact of the amendments on consumers, “to ensure there are no negative unintended consequences”.

“We are concerned these proposed changes will re-permit the payment of conflicted remuneration and reopen the debate about whether a financial planner is an impartial adviser or a sales rep,” he said.

Financial Services Council CEO John Brogden says the reforms will allow consumers to seek specific advice.

“These changes do not change the substance or the intent of FOFA,” he said. “The fundamental reforms and increased professionalism of financial advisers remain.

“However, these small changes ensure FOFA works as it was intended – to improve the quality and quantity of financial advice.”

Financial Planning Association (FPA) CEO Mark Rantall says the amendments will reduce advisers’ compliance costs.

“The FPA has long advocated for a more sensible, workable and practical FOFA legislation,” he said. “We are pleased the Government has therefore committed to consulting on the legal amendments necessary to fix these issues as a matter of urgency.”

Association of Financial Advisers CEO Brad Fox says his organisation will “work through the detail [of the changes], consulting with our members and our FOFA implementation working group, before making a submission” to the Government.

“At first glance it appears these changes are in line with the intent expressed by the minister and retain appropriate consumer protection, as well as enhancements that reduce regulatory overreach in the delivery of financial advice,” he said.