Future of Financial Advice

Exposure Draft - Further Stockbroking Exemptions

The Corporations Amendment (Future of Financial Advice) Act 2012 and the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 inserts Part 7.7A into the Corporations Act 2001 containing the Future of Financial Advice (FOFA) reforms.

The Corporations Amendment Regulation 2013 (No. N ) (the Regulation) contains limited exemptions for stockbroking-related activities from the application of the FOFA reforms.  Specifically, the Regulation extends the scope of existing stockbroking-related exemptions to provide that:

  • brokerage fees are exempt from the ban on asset-based fees on borrowed amounts; and 
  • fees can be paid by licensees that execute trades on behalf of the retail clients of other licensees, where those trades are requested by the client through the non‑executing licensee's online trading service, under circumstances where clients do not receive personal advice.

The exemptions identified in the Regulation will be subject to a two year review to ensure that they are working as intended.  The review will be undertaken by the Australian Securities and Investments Commission and will also encompass the existing FOFA exemptions relating to stockbroking activities.  Regulatory amendments are not required to perform this review.

Consultation Documents

Corporations Amendment Regulation 2013 (No. N) 274KB 6.5MB
Explanatory Statement 193KB 110KB


Submissions to this consultation closed on 17 May 2013.

Seven submissions have been received in response to this consultation. One of these submissions was confidential. The public submissions are listed below.

Australian Bankers' Association 115KB
Association of Financial Advisers 222KB
Australian Financial Markets Association 120KB
Financial Services Council 599KB
RBS Morgan 75KB
Stockbrokers Association of Australia 290KB

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