John Brogden, CEO of the Financial Services Council, said a 12-month transition to FoFA recognised the significant investment and training required by the industry to implement the extensive reforms. 

“FoFA will drive significant structural changes across the industry, costing $700 million upfront to implement and $375 million each year in ongoing costs. A 12-month transition period will allow businesses to make the necessary changes to IT systems, compliance processes, training and disclosure requirements,” Mr Brogden said. 

“The reforms will be accompanied by extensive regulations and regulatory guidance which will only be made available once the legislation has been passed. Therefore a July 2012 commencement with no transition period was simply unworkable. 

“A 12-month transition period will also appropriately align FoFA with the Government’s reforms to default superannuation, MySuper, due to commence in July 2013.”

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