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Financial advice

FoFA debate demands change to licensing of financial advisers

John Hewison
Founder and Director
4 Apr 2014

To meet the needs of consumers, the government needs to change the Financial Services Reform (FSR) legislation regulating the licensing of financial advisers, according to independent financial advisory firm Hewison Private Wealth.

Announcements made yesterday by Parliamentary Secretary to the Treasurer Steven Ciobom to proceed with proposed changes to Future of Financial Advice (FoFA) reforms after a temporary freeze has reignited the industry debate.

John Hewison, Managing Director at Hewison Private Wealth is calling for the Government to urgently draft legislation that separates licensing Independent Financial Advice from Financial Product Sales, to find a workable outcome to a debate that has raged for two decades.

“Australian consumers deserve a clear definition, understanding and choice between professional advice and product sales. Finance Minister Mathias Cormann has stated that he has no intention of dropping the best interest duty nor the ban on commissions paid to financial advisers.

“However, he also said that he saw no problem with product salespeople like bank branch employees being paid commissions and/or incentives by their employers.  This decision changes the game plan completely for the industry and consumers”, Mr Hewison said.

Download article Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.