Future of Financial Advice

Exposure Draft - FOFA Amendments

Senator the Hon Arthur Sinodinos AO released draft legislation and draft regulations for consultation to implement the Government's election commitment to amend the Future of Financial Advice (FOFA) legislation.

On 20 December 2013, Senator the Hon Arthur Sinodinos AO announced a package of changes to FOFA, including:

  • removing the opt-in requirements;
  • removing the annual fee disclosure requirements for pre-1 July 2013 clients;
  • removing the 'catch-all' provision from the best interests duty;
  • explicitly allowing for the provision of scaled advice;
  • exempting general advice from the ban on conflicted remuneration; and
  • broadening the existing grandfathering provisions for the ban on conflicted remuneration.

The Government's intended approach is that time sensitive amendments will be dealt with through regulations, to the extent allowed under the relevant regulation-making powers, and then locked into legislation. Further detail is provided in the explanatory material to the draft legislation and draft regulations.

Consultation Documents

  PDF RTF
Corporations Amendment (Streamlining of Future of Financial Advice)
Bill 2014
84KB 1.9MB
Explanatory Memorandum 467KB 1.4MB
Corporations Amendment (Streamlining of Future of Financial Advice)
Regulation 2014
84KB 2.2MB
Explanatory Statement 162KB 316KB

Submissions

Submissions to this consultation closed on 19 February 2014.

Fifty seven submissions have been received in response to this consultation. Seven of these submissions were confidential. The public submissions are listed below.

  PDF
AFM Advisers Pty Ltd 170KB
ANU Wealth Services 354KB
Association of Financial Advisers 283KB
Association of Independently Owned Financial Professionals 254KB
Australian Bankers' Association 3.0MB
Australian Council of Trade Unions 245KB
Australian Financial Markets Association 500KB
Australian Institute of Superannuation Trustees 460KB
Boutique Financial Planning 659KB
Burrell Stockbroking & Superannuation 197KB
CB Financial 166KB
Choice 495KB
Combined Pensioners and Superannuants Association of NSW Inc 379KB
Corporate Super Specialist Alliance 467KB
Customer Owned Banking Association 493KB
Domane Financial Advisers 268KB
Ellis, Mr John 74KB
Evans & Partners 2.2MB
Financial Planning Association of Australia 705KB
Financial Services Council 1.6MB
Governance Institute of Australia 172KB
Healthy Finances 139KB
Industry Super Australia 1.5MB
Institute of Chartered Accountants Australia and CPA Australia 130KB
Insurance Council of Australia 187KB
Johnstone, Mr Bill 335KB
Kingsford Smith, Professor Dimity 3.2MB
Lander & Rogers and Synchron Business Services Pty Ltd 805KB
Law Council of Australia 118KB
Mercer 290KB
Minter Ellison Lawyers 212KB
Mulcare, Mr Martin 95KB
National Insurance Brokers Association of Australia 191KB
National Seniors Australia 250KB
Nehme, Dr Marina 194KB
Parwada, Professor Jerry 288KB
Pattinson Financial Services 201KB
Perera Crowther Financial Services 230KB
Personal Asset Services Pty Ltd 242KB
Principal Edge Financial Services 242KB
Ranasinghe, Mr Basil 7KB
Stanford Brown Financial Advisers 88KB
Stephen Financial Solutions 254KB
Stockbrokers Association of Australia 3.2MB
Strategic Consulting and Training Pty Ltd 443KB
Super Advice Services 2.8MB
Superannuation Consumers' Centre 405KB
Tuck, Ms Jo 165KB
Wyatt, Mr George 7KB
Yellow Brick Road Wealth Management 192KB

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or The Treasury.