FOFA Changes: What is the current position?

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Effective 1 July 2014, the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014(Cth), has been registered resulting in the following regulatory amendments:

  • removal of the Opt-In requirement;
  • Fee Disclosure Statements to apply prospectively –from 1 July 2013 only;
  • removing the requirement to satisfy section 961B(2)(g) (the “catch-all” provision) from the best interests duty;
  • banning commissions on personal advice for investment and superannuation products; and
  • amending the grandfathering regulations in order to remove the current restrictions on trade for financial advisers who may change employers/licensees, and enable fair market competition for financial advisers selling their business.

All of these measures are required to be implemented prior to 31 December 2015 other than the grandfaterhing regulations. The regulations can be read here.