The Financial Planning Association (FPA) is continuing its campaign against the opt-in proposal in the Future of Financial Advice (FOFA) reforms.

FPA CEO Mark Rantall says the Federal Government should review the opt-in proposal again in the same way it has looked at commission on life insurance sold through superannuation.

“Opt-in is an onerous proposal that won’t benefit Australians seeking financial advice,” he said.

“We have welcomed a best interest duty and the banning of commissions on investments, which in effect make opt-in a redundant policy.

“No other profession is subject to such a policy and it will not lead to improved outcomes for consumers.”

Mr Rantall says the relationship between clients and their advisers is ongoing and doesn’t need a two-year agreement.

“The proposed opt-in requirement could put at risk planners’ ability to provide a critical response during crisis situations,” he said.

Last week the Australian Securities and Investments Commission said it supports opt-in, saying it means consumers don’t pay for advice they don’t need.

“This is utter nonsense.” Mr Rantall said.

“If the issue is either asset-based fees or ongoing fees then let us have that debate. It has nothing to do with opt-in.

“It is paternalistic to the extreme to use as an excuse that people don’t read their statements or paperwork as a reason to have opt-in,” he said.

“By all means give clients the opportunity to opt out every year, but forcing clients to have to opt in is an added burden they shouldn’t have to bear.”