The Government faces a struggle to push its Future of Financial Advice (FOFA) amendments through the Senate, with one high-profile independent ready to oppose the changes.

SA senator Nick Xenophon spoke out against the changes during an emergency debate last week.

“The Government has already gone back to the drawing board with its ill-considered first round of proposed FOFA reforms,” he told the Senate on Monday.

“I suggest it needs to go back again in a way that will protect consumers and will best avoid any future financial scandals.”

Senator Xenophon concedes the original legislation was not perfect but says he supported it because it improved consumer protection.

“Last week the Government released details of its reforms to FOFA, and the acting Assistant Treasurer [Mathias Cormann] has indicated he wants the measures implemented by regulation,” Senator Xenophon said.

“This is not good enough. A legislative framework is preferable to relying on regulations.”

The debate was called by Labor senator Claire Moore, who argues the FOFA amendments undermine consumer protection.

Fellow Labor senator Sam Dastyari says his party “will vote down the proposed changes in their current form and use whatever Senate tools – be they disallowance motions or other – available to ensure these important protections are not watered down”.

Labor senator Doug Cameron says arguments against the changes come from two clear groups.

“You have representatives of consumers and academics who have studied the legislation saying, ‘This is bad and it is taking protection for consumers backwards’,” he told the Senate.

“Then you have the banks and financial institutions saying, ‘This is great. This is what should happen. We should be free to get in there and talk to our clients.’ ”

Senator Dastyari says the financial advice industry will not gain consumers’ trust until it makes a commitment to planned and tailored advice.

“Those who stand to gain financially from the old system want to go back to clipping the ticket, without the hassle of basic consumer protections.

“But their incentives should not dictate how our laws function. This is already bad policy and, with the Government’s proposed reforms we now await some fascinating politics.”