The House of Representatives has passed amendments to the Future of Financial Advice (FOFA) Act despite the Opposition’s attempts to stop them.

Labor MP Gai Brodtmann told Parliament the original legislation was designed “to protect, protect, protect” consumers.

“This bill seeks to significantly weaken the FOFA reforms put in place by Labor.

“[It] rips away important and sorely needed consumer protections. Labor’s FOFA reforms sought to strike a balance by introducing further consumer protections, while simultaneously requiring financial advisers to meet higher standards of care and skill.

“The original twin objectives of FOFA were to rebuild trust and confidence in the industry and to expand the affordability and accessibility of financial advice.”

Parliamentary Secretary to the Finance Minister Michael McCormack told the House it is easy to forget the legislation’s role in providing quality, affordable financial advice.

“I think we can all agree that it is in the national interest for the quality and affordability of financial advice to improve, while building trust and confidence in the financial services industry,” he said in last week’s debate.

“It is of critical importance that we have a financial services industry delivering advice that people can trust, and at a price they can afford.”

But he says Labor’s FOFA legislation lacked balance between consumer protection and the cost of regulation.

The Government introduced amendments confirming changes made by regulation earlier this year.

They include rules on the statement of advice, which must be signed by advisers and clients, the need to meet the best-interests duty and conflicted remuneration requirements.

Parliamentary Secretary to the Treasurer Steven Ciobo says the amendments follow consultation with the financial services industry and “work to further clarify the operation of FOFA and better target the measures proposed by the bill”.

“The bill also amends the statement of advice requirements to implement the additional improvements agreed with the Palmer United Party and the Australian Motoring Enthusiast Party,” he said.

The bill now moves to the Senate, where its passage will depend on the support of independents.