News

These historic reforms provide much needed transparency for finance sector customers, and recognize that the conflicted remuneration models of our finance institutions are not in customers’ best interests.

The reforms mean that for the first time financial planners will be required by legislation to act in the best interests of their clients. Sales commissions and other forms of conflicted remuneration will be prohibited.



In the first instance, FoFA is about financial planning and the provision of financial advice. But the passage of these Bills also heralds the beginning of a cultural shift in the finance sector – a shift away from short-term thinking and risky remuneration practices to something more sustainable and professional.



By removing conflicts of interests, these Bills will result in consumers having greater confidence in the finance sector and greater trust in the people who work in the sector. The FSU believes FoFA is a big win for both finance sector workers and the customers that they serve.



I took the opportunity to congratulate the Federal Government, and in particular Financial Services Minister Bill Shorten, for introducing these reforms. I also congratulated the Independents and the financial services industry stakeholders who played a constructive role in the reform process.



The FSU is committed to continuing the work commenced with FoFA, so that we can work toward breaking the link between aggressive target-setting and performance management, and pay outcomes.

Leon Carter

FSU National Secretary