Future of Financial Advice
Welcome to the website for the Future of Financial Advice (FOFA) reforms. FOFA became mandatory on 1 July 2013 (and was voluntary from 1 July 2012).
The objectives of FOFA are to improve the trust and confidence of Australian retail investors in the financial services sector and ensure the availability, accessibility and affordability of high quality financial advice.
On 20 December 2013, the Government announced a package of changes to FOFA to implement its election commitment to reduce compliance costs and regulatory burden on the financial services sector. The changes are aimed at ensuring the integrity of the financial advice framework is maintained whilst delivering a system that offers affordable and accessible financial advice to the Australian community. On 20 June 2014, the Government announced the final package of changes to FOFA.
The Government's amendments were implemented through the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014. The Regulation commenced on 1 July 2014.
The Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014, including parliamentary amendments made by the Government, was passed by the House of Representatives on 28 August 2014. The Bill is currently before the Senate. Interim regulations (that is, those replicated in the Bill) will be repealed once the Bill passes the Parliament.
The Government agreed to make further improvements to FOFA on 15 July 2014. These improvements were implemented in the Corporations Amendment (Statements of Advice) Regulation 2014, which was made on 4 September 2014 and will commence on 1 January 2015.