FOFA fears subside, says survey

The survey of more than 100 professional advisers found that “FOFA is no longer the concern it once was”, with 10 per cent of advisers “worried” about FOFA compared to the 30 per cent that reported “concerns over the impact and risk of low-cost products on the markets”.

In addition, the survey found that 90 per cent of respondents are interested in “developing a comprehensive communications plan to attract and retain clients” and that “over 50 per cent” are interested in incorporating specialist SMSF and risk advice services into their business.

“The survey showed us that everyone is over FOFA and much more interested in getting on the front foot with their clients,” said ALF member Rachel Staggs of SRS Coaching and Consulting, commenting on the survey findings.

“Advisers all report a strong willingness to do the right thing with their clients and are facing competition from all angles.

“However, what appears to be getting in the way of this priority for advisers is their need for improved operations, efficiencies, talent and better support from their licensee.”

The findings come despite the government’s decision to pause the passage of the proposed FOFA amendments and opening up for further consultation, thereby leaving the financial advice industry in an effective state of flux.

Baker & McKenzie partner Astrid Raetze told ifa sister title InvestorDaily last week that many financial advice firms are “ignoring” the proposed amendments and changing course to implement the requirements of the FOFA legislation as it stands.

The ALF is a consortium of industry consultants comprising David Fotheringham and Bob Neill from Seaview Consulting; Tony McDonald from T and C Consulting; Cholena Orr from Profusion Group; Rachel Staggs from SRS Coaching & Consulting; and Colin Williams from HFS Marketing.