Labor financial services spokesman Bernie Ripoll says changing the Future of Financial Advice (FOFA) legislation will drive up compliance costs in the industry.

“The sector had already moved on and is operating business models under the existing FOFA laws,” he told a recent Stockbrokers Association of Australia conference.

“For many businesses, adjusting their operating models again just adds more cost, confusion and uncertainty.”

Mr Ripoll says Labor remains largely opposed to the Government’s planned changes to FOFA.

“They undermine consumer protections, reintroduce banned conflicted remuneration, allow conflicts of interest, remove essential disclosure and transparency and turn back the clock on behaviour and culture,” he said.

“While not stepping back from our unequivocal opposition to the bulk of the Government’s proposals, I have written to [Finance Minister] Mathias Cormann with an offer to work with the Government to resolve some elements of the bill that could be improved.”

Mr Ripoll maintains the proposed changes will destroy the spirit of the legislation.

“If the FOFA changes are implemented as drafted, it is effectively the end of credible best-interests provisions [and] a lifting of the standards and professionalism, and clearly sets out for the reintroduction of banned fees and commissions.

“It also means consumers will continue to be sceptical about the quality of advice they receive and leaves open the door for a product sales culture to continue rather than a focus on the provision of quality advice.”