FoFA Regulations Paused by Acting Assistant Treasurer

Senator the Hon Mathias Cormann, the Minister for Finance and Acting Assistant Treasurer, announced on 24 March 2014, that the legislation has been paused, and referred to the Senate Economics Committee which will enable the Government to consult with all relevant stakeholders on the Future of Financial Advice Regulations.

Senator Cormann re-stated the Government’s position on a pre-election commitment to restore the balance between appropriate levels of consumer protection and access to affordable high quality financial advice.

The Financial Services Council (FSC) issued a media release stating the decision  was both “prudent and sensible” with John Brogden CEO commenting that this will allow “stakeholders to re-group and make submission to the Senate Committee” to counter what he described as “white noise and misinformation” leading up to the introduction on the proposed refinements to the FoFA legislation.

Industry Super Australia (ISA) welcomed the announcement referring to the “freeze” as a “timely circuit breaker” and a “victory for common sense” applauding a return to consensus and industry agreement.

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