Future of Financial Advice

Implementation

Legislation

The Corporations Amendment (Financial Advice Measures) Act 2016 amended the Corporations Act 2001 to implement the Government's announced package of changes to FOFA.

The Corporations Amendment (Future of Financial Advice) Act 2012 and the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 (the FOFA Acts) amended the Corporations Act 2001 to implement FOFA.

Name Subject matter Date commenced
Corporations Amendment (Financial Advice Measures) Act 2016 Enacted the majority of amendments made through recent regulations and also extends the time for advisers to provide renewal opt-in notices and fee disclosure statements from 30 to 60 days. 19 March 2016
Corporations Amendment (Future of Financial Advice) Act 2012 Broader implementation of the adviser charging regime and expansion of ASIC's powers 1 July 2012 (mandatory compliance from 1 July 2013)
Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 Broader implementation of the best interests duty, ban on conflicted remuneration and other aspects of the FOFA reforms. 1 July 2012 (mandatory compliance from 1 July 2013)

Regulations

A series of regulations have been made to support the FOFA legislation.

Name Subject matter Date commenced
Corporations Amendment (Financial Advice) Regulation 2015 Provided a number of amendments including: changes to the modified best interests duty; changes to the definition of basic banking products; adding consumer credit insurance in the basic banking provision; adding notes to clarify client-pays provisions; and adding the existing wholesale/retail client distinction in the Corporations Act to FOFA. 1 July 2015
Corporations Amendment (Statements of Advice) Regulation 2014 Provided a number of amendments including: changes to grandfathering arrangements for conflicted remuneration; adding additional benefits that are permitted under conflicted remuneration; and ensuring that the extensions of renewal periods for accountant’s certificates apply to FOFA. 16 December 2014
Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014disallowed by the Senate Provided a number of changes to implement the Government's election commitment to improve the FOFA provisions, including: removal of opt-in, removal of the 'catch-all' provision in the best interests duty, facilitating scaled advice and allowing certain benefits in relation to general advice, 1 July 2014 (disallowed by the Senate on 19 November 2014)
Corporations Amendment Regulation 2012 (No. 4) Provides additional detail for the fee disclosure requirements; exempts product fees from the adviser charging regime; provides further detail on exemptions from the ban on conflicted remuneration for non-monetary benefits and exempts time-sharing schemes from the ban. 13 July 2012
Corporations Amendment Regulation 2012 (No. 8) Implements the original grandfathering arrangements for the ban on conflicted remuneration relating to platform providers. 3 October 2012
Corporations Amendment Regulation 2012 (No. 10) Clarifies the operation of the reduced best interests duty and the exemptions from the ban on conflicted remuneration, broadens the basic banking exemption from the ban on conflicted remuneration and exempts from the ban certain stockbroking-related activities. 27 November 2012 (Schedule 1)
1 July 2013 (Schedule 2)
Corporations Amendment (Intra-fund Advice Fees) Regulation 2013 Exempts intra-fund advice fees from the adviser charging regime and clarify the operation of the product fee exemption. 5 June 2013
Corporations Amendment Regulation 2013 (No. 2) Provides several minor exemptions from the FOFA reforms. 1 July 2013
Corporations Amendment Regulation 2013 (No.3) Removes the existing accountants' licensing exemption and implement the new 'limited' licensing regime. 1 July 2013 (Schedule 1) 1 July 2016 (Schedule 2) 1 July 2019 (Schedule 3)
Corporations Amendment Regulation 2013 (No. 4) Provides exemptions from the ban on conflicted remuneration for additional stockbroking-related activities. 18 June 2013
Corporations Amendment Regulation 2013 (No. 5) Tightens grandfathering arrangements for the ban on conflicted remuneration. 1 July 2013