The financial services industry has welcomed the delayed start date for the Future of Financial Advice (FOFA) reforms, but will keep lobbying on other elements of the bill.

“It is good to see that the collective efforts of the financial services industry have seen common sense prevail,” Association of Financial Advisers CEO Richard Klipin said.

“We trust this spirit of compromise, which is so necessary for the implementation of good policy, will continue.”

Financial Services Council CEO John Brogden says a 12-month transition to FOFA recognises the significant investment and training required by the industry to implement the reforms.

“FOFA will drive significant structural changes across the industry, costing $700 million upfront to implement and $375 million each year in ongoing costs,” he said.

“A 12-month transition period will allow businesses to make the necessary changes to IT systems, compliance processes, training and disclosure requirements.”

Financial Planning Association CEO Mark Rantall says the transition period will allow financial advisers to implement the reforms.

“This is a great outcome for common sense,” he said.

“The FPA has consistently lobbied the Government for the one-year transition to allow all financial advisers to implement these reforms in a transparent and efficient way.”

Coalition financial services spokesman Mathias Cormann says aligning the FOFA reforms with the MySuper changes, also due to start on July 1 next year, makes good sense as it will minimise costs and disruptions for the industry.

“Now [Financial Services Minister] Bill Shorten has accepted the Coalition has been right all along on the commencement date, he should also accept our other 15 recommendations designed to fix the major flaws in his current proposals,” Senator Cormann said.

Meanwhile, Asteron has urged advisers to continue lobbying their local members of Parliament for more changes to the FOFA bills.

Parliament is due to discuss the FOFA bills some time this week, after a debate last Thursday was dropped from the timetable.

Asteron EGM Adviser Distribution Jordan Hawke says advisers must not give up lobbying just because the bill is being debated.

“Advisers still have an opportunity to continue lobbying their MPs about the adverse effects of numerous elements in FOFA if they are passed,” he said.

“We will keenly monitor FOFA’s progress through Parliament in the coming weeks and continue fighting hard against FOFA to support advisers.”