By Clancy Yeates
The government has softened its planned shake-up of the financial advice industry, removing a requirement for customers to "opt in" to receiving advice.
Under the Future of Financial Advice reforms, to begin in July, the government had planned to ban commissions, introduce a "best interest duty" and force customers to "opt in" every two years.
But advisers are fiercely opposed to the "opt in" proposal, and have targeted MPs with a lobbying campaign claiming the measure will cost the industry jobs.
With the Coalition opposing the changes, Mr Shorten today unveiled amendments to secure the support of vital rural independents Rob Oakeshott and Tony Windsor.
"The government will be moving an amendment that offers financial advisers an alternative to the opt-in requirement," Mr Shorten said in Parliament today.
Under the proposed amendments, the Australian Securities and Investments Commission will be able to excuse advisers from the opt-in rule if they sign a professional code of conduct by 2015.
Mr Shorten, who developed the amendments with Mr Windsor and Mr Oakeshott, said the code of conduct would need to include requirements that made the "opt in" rule unnecessary.
Parliament is expected to vote on the reforms later today.
The FoFA reforms, designed after the collapse of Storm Financial in 2008, are intended to make financial advice more transparent and remove conflicts of interest in how advisers are paid.
"It is so important that mums and dads can engage an adviser without having to worry if the adviser is a professional or really just a product salesmen. These measures ensure the adviser is working for the consumer, not the product provider," Mr Shorten said.
In another move to appease industry anger over FoFA, Mr Shorten this month said the reforms would be voluntary during their first year of operation.
cyeates@smh.com.au