The Federal Government has put on hold plans to change part of the Future of Financial Advice (FOFA) legislation.

Finance Minister Mathias Cormann says he will not use the regulation process to change aspects such as grandfathering and other areas for which exemptions expire on July 1.

“Now the legislation has been referred to the Senate economics committee, and to enable the Government to consult in good faith with all relevant stakeholders on the FOFA regulations, I have decided to pause implementation of these regulations during that consultation,” he said.

It’s understood the Government has been surprised by the level of opposition in the community to the changes, particularly lobbying from groups representing older Australians.

“The Government remains committed to implementing the improvements to FOFA laws that we took to the last election as soon as possible,” Senator Cormann said.

“These election commitments are reflected in the legislation currently before the House of Representatives, which will continue through the normal parliamentary process.”

The Senate committee is due to report on June 16, only two weeks before many of the current FOFA exemptions expire on July 1.

Most parties agree the amendments are unlikely to pass the Senate before then, so advisers will have to comply with the legislation in its current form from that date.