A number of the government’s FOFA reforms commenced on 1 July 2014 by way of the Corporations Amendment (Streamlining Future of Financial Advice) Regulation. These changes include:
- Removal of ‘opt-in’ requirements
- Removal of the catch-all provision of the best interest duty
- Increased options to provide scaled advice
- Removal of the requirement for fee-disclosure statement to pre-1 July 2013 clients.
The government will seek to introduce the balance of the proposed reforms to FOFA by way of a mix of regulations and amendments to the Corporations Act. For more details see the Acting Assistant Treasurer’s statement.
With the changes in the Senate from 1 July 2014, and public statements from various parties as to their position on the FOFA reforms, the path of the FOFA reforms may not be smooth.
For details of the amending regulation please click here.