Future of Financial Advice

Exposure Draft - FOFA Regulations on Grandfathering

The Corporations Amendment (Future of Financial Advice) Bill 2012 and the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2012 (the Bills) were introduced into the House of Representatives on 13 October 2011 and 24 November 2011 respectively. Both Bills passed the House of Representatives on 22 March 2012. The Bills amend the Corporations Act 2001 to introduce the Future of Financial Advice reforms.

To accompany the measures in the Bills a number of amendments to the Corporations Regulations 2001 (the Principal Regulations) will be made.

The Corporations Amendment (Further Future of Financial Advice Measures) Bill 2012 (the Second Bill) introduces a ban on conflicted remuneration. The Second Bill introduces a new section 1528 in the Corporations Act 2012, which ‘grandfathers’ certain benefits from the application of the ban on conflicted remuneration.

These draft regulations would amend the Principal Regulations for the purposes of clarifying the grandfathering arrangements under section 1528.

The documents linked below provide an exposure Regulation and a draft Explanatory Statement for this element of the regulations with respect to the measures proposed in the Bills.

Consultation Documents

  PDF RTF
Corporations Amendment Regulation 2012 (No. ) 134KB 369KB
Explanatory Statement 190KB 79KB