A request for an opinion from the Palmer United Party, which is expected to have a settlement in the Senate in July, was unsuccessful.
It is unclear whether the government will try to enforce the changes in early 2014 or wait for the Senate composition to change.
The government’s plans have been welcomed by groups such as the Association of Financial Advisers, the Financial Services Council lobby group, and the financial services company BT Financial Group.
However, consumer group Choice said that interest rate changes could mean “consumers are not protected from poor financial advice” and the removal of two-year “opt-in” requirements puts the risk of “millions of dollars in consultancy fees” if no advice is given he follows”.
” We acknowledge that the financial advisory industry has campaigned aggressively for the FOFA to be repealed [Future of Financial Advice] Reforms, but if the government persists with these changes we would urge them to consider alternative ways to protect Australian consumers from the very real costs and effects of passive fees and conflicting financial advice. ”
The Australian Bankers Association lobby group said the proposed changes mean the FOFA can still operate without banks having to make significant changes to their business models, compliance systems and workplace agreements early next year, which would have resulted in retail banking products become cumbersome and expensive ”.