FOFA Amendment Bill passed by House of Reps

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The amendments contained in the Bill confirm the changes that were made by regulation earlier this year. The amendments also include changes agreed with the Palmer United Party and the Australian Motoring Enthusiast Party. The revised explanatory memorandum for the Bill states it is part of the Government’s commitment ‘to provide certainty and reduce compliance costs for small business, and financial advisers, whilst maintaining the quality of advice for consumers who access financial advice.

As set out in the revised explanatory memorandum, the key amendments include:

  • removing the‘opt-in’ requirement.
  • fee disclosure statements only required for clients who entered into their arrangement after 1 July 2013;
  • the ‘catch-all’ provision for the best interests obligation is removed;
  • better facilitating the provision of scaled advice; and
  • allowance of certain benefits on general advice in certain circumstances (payments commonly known as commissions are not permitted).

There are also amendments to the Statement of Advice requirements. 

For details of the amendments made by regulation earlier this year see our FOFA blog update here.

The Bill now moves to the Senate for consideration.

To see a copy of the Amendment Bill click here.

Topics:  Amended Legislation, Australia, FOFA Reforms

Published In: General Business Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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