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.