FoFA laws defeated, financial sector flags extra cost issues

FoFA laws defeated, financial sector flags extra cost issues

The Senate has voted to overturn the federal government’s financial advice laws, after Labor and the Greens gained the support of key crossbenchers.

However the federal government is hoping its controversial financial advice changes will remain in place for several more months, despite the action in the Upper House last night.

Finance Minister Mathias Corman has vowed to continue the fight for the coalition’s reforms, calling on the sector to ‘facilitate an appropriate transition’ back to Labor’s laws on July 1 next year.

Meanwhile the Financial Sector has criticised the Senate’s decision to defeat the federal government’s changes.

Financial Services Council CEO John Brogden says the motion will create a “legal quagmire” and lead to millions of dollars in extra costs.

Financial Planning Association head Mark Rantall has also predicted it will have a “catastrophic effect” across the country and continue five years of uncertainty.

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Amy Whittaker
Amy Whittaker 1402 posts

<p>Amy joined the NRN team in August 2011, before graduating from a B of Arts (Communication-Journalism)/B of Sports Studies from Charles Sturt University in December 2011.</p>

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