Australia: New year, new FoFA

Last Updated: 11 February 2014
Article by Matthew Daley and Erik Setio

Key Points:

The consultation process for the proposed FoFA changes is open until Wednesday, 19 February 2014.

Major changes to the Future of Financial Advice (FoFA) regime are being proposed by the Government in 2014. Participants of the financial services industry should take note of the proposed changes as they will likely have a significant impact on their day-to-day operations.

In this article, we will look at the proposed changes which include, amongst other things, the carve-out of general advice from the ban on conflicted remuneration, the scaling back of the best interest duty, the broadening of the grandfathering provisions and amendments to provisions regulating the ongoing fee arrangements.

New exposure draft FoFA amending Bill and Regulation

On 29 January 2014, the Government issued the following for public consultation:

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