Super Firms Have Lobbied The Government For A Very Last-Minute Extension To 1 July Reform

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The Financial Services Council has written to Kevin Rudd, Chris Bowen and Bill Shorten requesting a 12-month extension for superannuation laws that were due to come into effect on Monday.

“I was very encouraged by what the Prime Minister said last night in his incoming speech,” FSC CEO John Brogden told Business Insider this afternoon.

“The majority of companies are finding it very hard to comply with both FOFA and Stronger Super. It’s an enormous package of regulation.

“The main reason that compliance is an issue is legislation is only still being passed, regulation is still being written and hasn’t been issued and ASIC is still issuing guidance.

“We don’t even know everything that we’re going to have to comply to by 1 July.”

FOFA reforms were introduced by Chris Bowen under the previous Rudd Government in 2010. Bowen was sworn in as Treasurer today.

FOFA was designed to address potential conflicts of interest in the financial planning sector by restricting percentage-based fees and requiring more transparency and flexibility.

Firms could opt-in to the FOFA regime from 1 July 2012; the reforms were due to become mandatory as of Monday, 1 July 2013.

Stronger Super is a wider package of reforms that, among other changes, requires superannuation funds to offer a low-cost, default ‘MySuper’ product from Monday.

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