Future of Financial Advice

Exposure Draft - FOFA Regulations on Grandfathering

The Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 (the Act) amends the Corporations Act 2001 to introduce a ban on conflicted remuneration for financial services licensees and their representatives. The new section 1528 in the Corporations Act 2001 and the Corporations Amendment Regulation 2012 (No. 8) 'grandfathers' certain benefits from the application of the ban on conflicted remuneration.

The draft Regulation amends the current arrangements to grandfather certain benefits that relate to the investments of existing clients prior to 1 July 2014. The ban on conflicted remuneration will apply to all new clients after this date.

A draft Regulation and a draft Explanatory Statement are provided below for comment.

Consultation Documents

Corporations Amendment Regulation 2013 (No. ) 338KB 1.8MB
Explanatory Statement 50KB 109KB


Submissions for this consultation closed on 18 March 2013.

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

Abacus Australian Mutuals 55KB
AIA Australia Limited 673KB
AMP Financial Services 110KB
Association of Financial Advisers 161KB
Australian Bankers' Association 446KB
Australian Financial Markets Association 636KB
Financial Services Council 1.2MB
IG Markets Limited 973KB
Industry Super Network and Australian Institute of Superannuation Trustees 485KB

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