Future of Financial Advice

Exposure Draft - Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011

On 26 April 2010, the Government announced the Future of Financial Advice (FOFA) reforms. The reforms are aimed at enhancing consumer protection and raising trust and confidence in the financial advice industry.

On 29 August 2011, the Government released the first tranche of draft legislation implementing these reforms entitled Corporations Amendment (Future of Financial Advice) Bill 2011.  The first tranche covered statutory best interests duty, compulsory renewal requirement (opt-in), and the enhancement of ASIC’s powers.

The exposure draft and EM are being released today form the second and final tranche of draft legislation on the FOFA reforms.  The second tranche of the legislation covers the provisions relating to conflicted remuneration including the ban on commissions and other volume-based payments to financial advisers, the ban on soft-dollar benefits to financial advisers, the ban on volume-based shelf-space fees to product platforms and ban on asset-based fees involving leverage. 

Consultation Documents

  PDF DOC/RTF
Explanatory Memorandum 228KB 339KB
Exposure Draft 57KB 158KB

Submissions

Submissions for this consultation closed on Wednesday, 19 October 2011.

A total of 48 submissions have been recieved in response to the draft legislation. 14 submissions are confidential, and the remaining 34 are public, which are listed below.

  PDF DOC
Abacus Australian Mutuals 67KB 50KB
AIA 59KB 52KB
AIOFP 32KB 24KB
AIOFP Attachment 74KB
AIOFP Supplementary Submission 38KB 23KB
AIST 281KB 404KB
Alpha Group 44KB 51KB
ANZ 205KB
ASDA Securities 54KB 1.6MB
Associated Advisory Practices 241KB
Associated Advisory Practices Supplementary 292KB
Association of Compliance Professionals Aust Inc 87KB
Association of Financial Advisers 77KB
Australian Bankers Association 357KB
Australian Financial Markets Association 318KB
CMC Markets Asia Pacific 3.23MB
Corporate Super Specialist Alliance 69KB 109KB
Deloitte 66KB
Finance Sector Union 184KB
Financial Planning Association 470KB
Financial Services Council 89KB 67KB
Henry David York Lawyers 1.4MB
Insurance Council of Australia 57KB
ISN 178KB
JAB 244KB
Joint Consumer Groups 310KB
Law Council of Australia 113KB
Law Council of Australia (main submission) 275KB
McCulloch Robertson Lawyers 254KB
Minter Ellison 140KB
National Insurance Brokers Association 446KB
National Investments Ltd 23KB 27KB
RBS Morgans 69KB 152KB
Stockbrokers Association of Australia 214KB
Vanguard Investments 1.1MB
Wealthinsure 41KB 28KB
Wyndham Vacation Resorts 3.71MB