The Financial Planning Association (FPA) has submitted its response to the Federal Government’s planned overhaul of financial services regulation. Parliamentary Secretary to the Treasurer Chris Pearce released an options paper in November, detailing possible changes to legislation.

The FPA says its response has been generally positive. There had been fears planners would be required to take out professional indemnity insurance, but the Federal Government has since ruled such a regime unworkable.

The submission instead calls on the Government to consider the quality of available indemnity insurance alongside any quantifiable amount of cover.

The FPA has also urged the Government to rethink its plans to establish a new category of financial professional. Under the options paper, “product sellers” could face different regulations from “financial planners”.

FPA CEO Jo-Ann Bloch says there are also concerns about the introduction of a new sales recommendation category, the proposed ($10,000) materiality threshold, and the intention to leave superannuation products out of the new arrangements.

Government representatives met stakeholders on January 18 in one of several scheduled consultation meetings. Mr Pearce says all comments will be taken into consideration as his department works on a proposal for his recommendation.