New laws governing financial advice have been put on hold after concerns emerged in recent week from the Financial Planning Association and the superannuation industry.
There were fears that bank tellers and call centre employees overseas would be paid commissions to sell financial products and superannuation.
Finance Minister Mathias Cormann said today the Future of Financial Advice (FOFA) legislation, part of the government’s anti-red tape push, would be put on hold while he consults with major stakeholders.
In a statement, Cormann said:
“I have decided to pause the process on the FOFA regulation for the time being to enable me to consult in good faith with all relevant stakeholders before pressing the go button on our changes.
“We remain committed to implement the improvements to FOFA which we took to the last election as soon as possible.”
The Financial Planning Association (FPA) last week told its members: “The FPA strongly opposes the payment of commissions under the general advice exemption” proposed by the government.
The association says this re-opens the door to an era of of mis-selling and inappropriate advice.