Arab Today, arab today australian government facing challenges on financial planning reforms
Last Updated : GMT 16:10:08
Arab Today, arab today
Arab Today, arab today

Australian government facing challenges on financial planning reforms

Arab Today, arab today

Arab Today, arab today Australian government facing challenges on financial planning reforms

Canberra - XINHUA

The Australian government is facing intense challenge from banks and financial service providers to act on reforms of the financial advisers sector as crafted by the previous Labor government, collectively known as the Future of Financial Advice (FoFA). The new government has recently asked Treasury and the Australian Securities and Investment Commission(ASIC) for advice on whether the Labor Law designed to minimize financial planners\' conflict of interests should be watered down more than promised during the election. Assistant Treasurer Arthur Sinodinos, who has an obligation to deliver the changes the Coalition promised during the campaign, will stand for the government to respond to the industry pressure. The changes were designed to stop remuneration arrangements for financial advisers, which for many years created a conflict between the interests of clients and maximizing advisers\'income. In a survey published recently, ASIC found only 23 percent of \" stakeholders,\" including investors, consumers, brokers and government agencies, believed that financial advisers acted with integrity. Nearly a third of respondents suggested advisers were dishonest. The Financial Services Council (FSC) has predicted that raising the reputation of financial advisers substantially could take more than five years, following another dismal survey of planners by the corporate regulator. John Brogden, chief executive of the FSC, said he hoped to see an improvement in the standing of planners in two years\'time. However he warned it would take a long time for the overhaul of the advice sector to translate FoFA reforms into improved confidence in the planning industry, partly because the reform process uncovered all the ills in the sector. \"No one should kid themselves that we have a long way to go in building trust. We have just gone through the reforms but we have not seen the benefits come through yet,\" said Brogden. Industry Super Australia (ISA), which represents a group of large industry retirement schemes, has questioned claims that retail banking products were unintentionally caught up in the advice regime introduced in July this year. \"Ensuring that all advice channels within the vertically integrated banking sector were included in the reforms was an intentional and critical aspect of the design to ensure there were consistent rules across the sector,\" said Robbie Campo, deputy chief executive of ISA. But ISA rejected the need for further exemptions to be granted to the banks. \"Unless there is clear evidence of the measures resulting in unintended onsequences, ISA would be concerned to see any further exemptions or dilution of the conflicted remuneration prohibition or best interest test, as it would compromise the integrity of the reforms,\" Campo said. Former Superannuation Minister Chris Bowen argued that any watering down of FoFA will create more uncertainty and red tape for the industry and weaken investor protection. \"Labor will be carefully scrutinizing any proposed changes from the government in this area, especially where it goes beyond Coalition election promises,\" said Bowen. The Australian Bankers\' Association said it supported the FoFA reforms in principle but the industry has been concerned about the breadth of the provisions and the prescriptive nature of the changes. \"The FoFA reforms need to be directed at the business of financial planning and the provision of personal advice by financial planners, not banks and the business of banking,\" ABA\'s acting chief executive Tony Burke said. Consumer advocacy group Choice\'s former chairwoman and spokesperson, Jenni Mack, said confidence in the superannuation system would be at risk if changes were introduced to the current FoFA regime. Mack said,\"We can\'t lose sight of why FoFA came in, it\'s because of Westpoint, Storm and Trio. Confidence in the government will be at risk, confidence in our super system will be at risk, FoFA was a package of reforms designed to address all of those things and give consumers peace of mind.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today australian government facing challenges on financial planning reforms Arab Today, arab today australian government facing challenges on financial planning reforms

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today australian government facing challenges on financial planning reforms Arab Today, arab today australian government facing challenges on financial planning reforms

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday