Why FoFA should have been only the start of reform

If the financial advice industry is serious about professionalising itself, it needs to ditch percentage fees and charge a dollar amount to ensure the best interests of clients are served.

In my open letter to Assistant Treasurer Arthur Sinodinos this week in which we at Eureka Report called on him to pull back from repealing key parts of the Future of Financial Advice legislation, I wrote: “There should be a lot more reform … but FoFA is a good start”.

Financial advisers, horrified at FoFA and lobbying Senator Sinodinos to get it changed, might be wondering what that meant, if they’d got that far into the letter. So let me explain.


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