Feb 6, 2012

The impact of FOFA — industry claims brought undone

A new report shows how hysterical the financial planning industry has been in its opposition to reform.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

The financial planning industry’s campaign against the government’s Future of Financial Advice reforms has stumbled, with a new report discrediting industry claims about massive job losses resulting from the reforms.


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11 thoughts on “The impact of FOFA — industry claims brought undone

  1. sickofitall

    Shorten has something to do with it? Doomed to failure. Agreed it’s important. But don’t give that tool anything.

  2. Jimmy

    Sickofitall – Yeah didn’t he do a terrible job with disabilities?! Not.

    Fee for service is the only way to go for financial planners, better for clients & will get more respect for the industry as it brings them in line with other “professionals”. I have no doubt some financial planners will leave the industry but it is only the ones who got into the industry when you needed no qualifications, have built up a nice amount of “funds under management” and now make a tidy sum doing very little off commissions.

  3. Ramsay Andrew

    The report was commissioned by Industry Funds so doesn’t that make its “findings” about as credible as a Gina Renehart commissioned report on the mining tax? Not saying that AMP’s views are correct but this is no independent study and lacks credibility.

  4. Bill Hilliger

    And yes the media nowadays never analyses these ambit claims of job and industry losses. Journalist wouldn’t know how to apply a credibility test on anything that comes their way.

  5. GrainOfSalt

    I’m going through the full Rice Warner report now and as usual it’s full of inconsistencies and wild assumptions. Surely the fact that it was commissioned by the ISN and finds exactly what the ISN wanted it to find is cause to regard it with some scepticism? Yes 25,000 job losses seems excessive but Bernard why are you taking such potentially conflicted research as the gospel truth? You question the findings and motives of the retail planning sector but assume whatever the industry fund sector says is beyond reproach.

    “The whole argument is now moot because Rice Warner has updated its report”…?! So that’s it then – whatever Rice Warner’s ISN-commissioned research says must be fact?

  6. AR

    Job losses in the finance industry? That’s a problem?
    Let them do something more useful, like unpick oakum or follow Good Soldier Schweik’s profession (before conscripted for WWI) – there’s plenty of scope in the excruciatingly trendy inner city areas which they probably infest.

  7. c d

    The superannuation pool is something everyone wants to get their hands on. So the only wealth transfer will be from planners to industry superfunds. It’s just transferring from one pack of parasites to another. I wonder who will next have the ear of the government of the day and manage to carve off their piece of the pie. Probably the real estate industry.

  8. John

    FOFA…I had to laugh at the acronym. In Portuguese it means ‘soft one’.

  9. Peter Ormonde

    I would actually be far more concerned if the finance scammers just quietly sat in a corner and did nothing about the reforms. I expect vested interests to squeal like stuck pigs. I demand it. Or we’re missing the target.

    And of course it’s the job losses and the future of the kiddies they’d be worried about… oh yes indeed. Deep social consciences this lot.

  10. cannedheat

    @AR: we’re talking financial advisers here not investment bankers and the like. I’d hazzard they are more active in the burbs than the inner city. Nice that they are screaming.

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