Can dealer groups retain volume bonuses under FOFA? Do you need to be a mind reader to figure out what ASIC wants in terms of Codes of Conduct? Can you keep paying commissions under FOFA?
These are some of the issues The Fold Legal (The Fold) team tackle on the Frankology blog on their newly-launched website – www.thefoldlegal.com.au
“Frankology will host our frank takes on issues which affect the financial services industry,” says Managing Director of The Fold, Claire Wivell Plater.
“We believe the industry needs some straight talking on topics that will affect the daily operation of financial services businesses and we are not afraid to tell it how we think it is.”
The Fold helps financial services firms of all sizes manage their legal, regulatory and commercial challenges at every stage of the business life cycle – from start up to expansion to sale. They’ve worked with businesses in the general insurance, financial planning, funds management, credit, accounting and carbon spaces.
“The idea for Frankology was born following some curly questions put to us by our clients,” Ms Wivell Plater says. “We realised that following FOFA, MySuper and the many other imminent legislative changes facing the industry, many people would be asking similar types of questions and would want straight answers. So straight answers is what we will be giving them.”
On the issue of volume bonuses, The Fold was asked….
A colleague of mine has been told by their AFSL that they will no longer pass on volume payments to the rep. They claim this is due to best interest duties. I can’t see how the AFSL holding volume payments assists best interest. Does this seem right or is the AFSL using it as an excuse to retain more funds?
On the issue of Codes of Practice, The Fold was asked in what circumstances an opt-out arrangement might be acceptable to ASIC in a Code of Practice.
The Fold’s opinion on these two issues are available in the Frankology section of The Fold’s new website – http://www.thefoldlegal.com.au/frankology
The Fold’s website is also home to a range of regulatory and compliance products which will soon feature in an online store. Also coming soon are a KnowHow section that will host white papers and articles on financial planning and business issues and online CPD for financial advisers.
“Our mission in life is to take away the fear factor of legislation and regulation for financial services businesses,” Ms Wivell Plater said. “Keeping up-to-date is exhausting – we want to make it easy. And our new website is just one of the ways we are doing that.”