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IFSA still working on sales recommendation

The two peak financial services bodies have welcomed the introduction of the Simpler Regulatory System Bill to Parliament, but the Investment and Financial Services Association (IFSA) CEO Richard Gilbert says he will continue to work with the Federal Government on areas such as the sales recommendation.

He says the bill will enable improved access to financial advice, enhance investor participation, reduce compliance costs and improve business efficiency.

“Some companies report compliance costs of legislation and regulations governing the financial services industry to be as high as 10-15% of total operating costs, so any reduction will eventually trickle down to consumers,” he said.

Financial Planning Association (FPA) CEO Jo-Anne Bloch says the proposal to ease the compliance burden earns the Government “a vote of thanks for listening to the concerns of FPA members”.

“We have long campaigned that the compliance burden on our planners has made it difficult in many cases to make good financial advice affordable for everyone,” Ms Bloch said.