MEDIA RELEASE

Minister Cormanns FoFA position a landmark victory

Sydney, 20 !ne 20"#$ The Financial Planning Association of Australia (FPA) today congratulated Finance
Minister Mathias Cormann for handing down a decisive victory in favour of all consumers who seek certainty
in their dealings with the financial advice system in Australia.
The Future of Financial Advice reforms (FoFA) egan as an amitious s!rint to transform our sector"
ecame a four#year marathon ogged in detail and has ended as a smart#run victory to !lace the interests of
all Australians first"$ said FPA C%&" Mark 'antall.
&n ehalf of the !rofessional financial !lanners in Australia we welcome today(s announcement y the
Minister" and acknowledge that reason" common sense and a roust democratic !rocess has each done its
)o.
The FPA will now lend its weight to seeing through the orderly im!lementation of today(s FoFA
announcement into law" and encourages its memers to emrace the u!side enefits of o!erating within a
world(s est consumer !rotection framework"$ Mr 'antall said.
Mr 'antall said the FPA had cam!aigned hard over *+ months on key as!ects of FoFA and was delighted to
see its work on s!ecific issues recognised and reflected in today(s announcement.
F%A &ins
,!ecifically" the FPA is delighted to have cham!ioned the following outcomes-
,ensile amendments to FoFA that maintain a high ar on consumer !rotections and that are also
!ractical and efficient
'eforms that are effective" efficient and deliver a!!ro!riate !rotections to consumers
'ecognition of the FPA(s !ulic !osition to !rovide a !ractical" workale and affordale FoFA
legislation for financial !lanners and their clients
'emoval of unnecessary and du!licated red#ta!e regulation" including the &!t#.n and retros!ective
Fee /isclosure ,tatements
A com!lete an on commissions on investments and su!erannuation !roducts
'emoval of clause 0g( in the safe harour ste!s of the est interests duty to !rovide certainty and
clarity for oth financial !lanners and their clients on what they should e1!ect when acting in the est
interests of their client
A correction of the grandfathering regulations made to remove the current restrictions on trade for
financial !lanners who change em!loyers2licensees and enale fair market com!etition for financial
!lanners selling their usiness.
'(e )*ol+ o+ *all Street cla!se
The FPA is !articularly !leased with" and welcomes" the 3overnment(s heeding of its recommendation to
eliminate the so#called 04olf of 4all ,treet( clause within general advice" y removing any !ossile return of
commissions on investments and su!erannuation !roducts.
This ga! in the FoFA draft needed to e closed and nailed shut forever y the 3overnment. The conce!t of
rewarding sales !eo!le on the volume sales of financial !roducts and services in the form of emedded
!roduct commissions is a ygone !ractice and has no !lace in a !rofessional" client#centric advice world.
The FPA is delighted with this outcome"$ Mr 'antall said.
Mr 'antall said that today(s announcement to amend FoFA should e given swift !assage through
Parliament" and he commended the final form of the !rocess to FPA memers and the Australian !ulic as
not )ust a legislative victory ut an un!recedented o!!ortunity to forever cement a viale" virant !rofessional
advice system in Australia.
4e stand together with all Australians. This new shift in the landsca!e gives us even greater confidence in
our collective future"$ Mr 'antall said.
, Ends ,
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For more in+ormation or to speak &it( t(e F%A, please contact$
,o!hie ,chuler" 9lueChi! Communication
T- 8*8: 8*8 8;; . %- f!a5luechi!communication.com.au
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-ote to .o!rnalists
A/o!t t(e F%A
The Financial Planning Association (FPA) re!resents the interests of the !ulic and Australia(s !rofessional
community of financial !lanners. The Association is unrivalled in its reach of the financial !lanning market"
influence on government and regulators" standards set through a world#class Code of Professional Practice"
uni?ue !osition as the certification ody in Australia for the gloal CFP
@
designation" and re!utation for
?uality !rofessional develo!ment. 4ith a growing memershi! of more than 78"888 memers and affiliates of
whom A"B88 are !ractising financial !lanners" the FPA is home to Australia(s B"B88 CFP
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!rofessionals.
9uilding on a ;8#year legacy" the FPA re!resents the changing face of financial !lanning from industry to a
!rofession. For more information" visit www.f!a.com.au
CFP
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" C%'T.F.%/ F.<A<C.AC PCA<<%'
@
and CFP Cogo
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are certification marks owned outside the D, y
the Financial Planning ,tandards 9oard Ctd (FP,9). Financial Planning Association of Australia Cimited is
the marks licensing authority for the CFP
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marks in Australia" through agreement with FP,9.