We have seen the Future of Financial Advice (FoFA) legislation ban commissions, kickbacks and incentive payments; essentially the control mechanisms of financial institutions and product manufacturers. We have also witnessed the recent controversy surrounding the quality of advice resulting from sanctions issued by the corporate regulator, Australian Securities and Investments Commission (ASIC) to Commonwealth Bank and Macquarie Bank, which has resulted in a further investigation by the Federal Government’s Financial Systems Inquiry (FSI).
Hewison Private Wealth has called on the corporate watchdog to take “urgent action” against property spruikers and mortgage brokers who take advantage of LRBAs.
We are all still reeling from the Commonwealth Bank of Australia (CBA) and Macquarie Bank financial advice disasters. The financial planning industry, together with the Federal Government and key financial institutions are debating the need for further FoFA reform.