Pensioners welcome FoFA pause: Call for independent cost-benefit analysis

Pensioners welcome Finance Minister Mathias Cormann’s ‘pause’ of the Future of Financial Advice amendments.

“Pensioners have been calling CPSA over the past week in disbelief that the Government is trying to wipe out FoFA’s key consumer protections. Many have lost thousands in retirement savings because of dodgy financial advice and see FoFA as levelling the playing field.”

“While a pause to the amendments is welcome, CPSA calls for an independent cost-benefit analysis that outlines how much the Government’s amendments will cost consumers.”

“The Government went to the last election stating that it will ‘improve the best interest duty’.[1] These amendments will do the exact opposite by totally undermining the requirement for advisers to act in their client’s best interests.”

“There is clear community opposition to the FoFA amendments and Minister Cormann should heed these concerns. No action should be taken on FoFA until the FoFA amendments’ true cost to consumers is determined.”

Contact: Charmaine Crowe
Mobile: 0422 707 332

 


[1] The Coalition’s Plan to Boost Productivity and Reduce Regulation https://www.liberal.org.au/latest-news/2013/07/08/coalitions-policy-boost-productivity-and-reduce-regulation p.26