01.Budget changes make FoFA protections more important than ever
With Australians being expected to rely more on personal savings in retirement, it is essential that consumers can access independent financial advice that puts their best interests first.
Today CHOICE has told a Senate Committee that the federal government must abandon plans to wind bank consumer protections for financial advice. The government is currently pursuing changes to the Future of Financial Advice, or FoFA, legislation. CHOICE told the Senate Committee on Economics that any windback of FoFA will cost consumers.
FoFA was first introduced in 2012 after multiple scandals involving poor and conflicted financial advice, like Storm Financial and Opes Prime, led to people losing their homes and life savings.
Changes announced in the most recent Federal Budget to age pension eligibility and indexation of payments means that investments, including superannuation, will become more important to people in retirement. It is vital that anyone seeking financial advice can trust that they are receiving independent advice, uninfluenced by conflicted payments and that their adviser will communicate regularly and clearly with them about investments.
What will changes to FoFA mean for your retirement?
CHOICE has produced this infographic to help you understand proposed laws and why strong consumer protections for financial advice will be important in retirement.