Smoother Transition for Financial Advice Reforms

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Australia’s wealth management industry will benefit from more flexible commencement arrangements for the Future of Financial Advice (FOFA) reforms. The reforms will commence from 1 July 2012, as originally announced, but the application of the provisions will be voluntary until 1 July 2013. Mandatory application will start from 1 July 2013. This means that any […]

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ASIC paper (CP 176) reviewing regulatory approach to platforms

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ASIC yesterday announced it is reviewing its regulatory approach to platforms as part of broader efforts to promote investor confidence in the sector. The platforms sector attracts significant funds. In the last decade the level of non-superannuation-related investment in platforms has doubled to around $100 billion of funds under management. ‘The platforms sector has changed […]

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FOFA penalises advisers who act in the client’s best interests

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Draft Future of Financial Advice (FOFA) regulations designed to curb a non-existent churning culture will penalise advisers who act in the client’s best interests, according to Synchron. “On the one hand, FOFA demands advisers act in the best interests of clients but on the other, where acting in the best interests of the client involves […]

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Financial services industry rallies to fight FoFA

In a huge demonstration of support for the work being done by the Federal Opposition to oppose elements of the Future of Financial Advice (FOFA) reform that threaten the financial advice industry, a hundred financial services representatives – including advisers from every state in Australia, industry leaders and the heads of all six adviser associations […]

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MySuper negates Ripoll’s consumer engagement ambitions

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Measures to be introduced into MySuper will undermine the ambition of Bernie Ripoll, Chair of the Parliamentary Joint Committee on Corporations and Financial Services (the PJC), to improve consumer engagement with their retirement savings, according to the Corporate Super Specialist Alliance (CSSA). Mr Ripoll was reported yesterday as saying he hoped the introduction of Future […]

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Future of Financial Advice

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On 29 August 2011, the Government released the first tranche of draft legislation implementing these reforms entitled Corporations Amendment (Future of Financial Advice) Bill 2011.  The first tranche covered statutory best interests duty, compulsory renewal requirement (opt-in), and the enhancement of ASIC’s powers. The second tranche of the legislation covers the provisions relating to conflicted […]

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Rice Warner clarifies cost of opt-in calculation

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Rice Warner has submitted a letter to Minister Bill Shorten, Minister Financial Services & Superannuation, to clarify the analysis of its costs of ‘opt-in’ and to emphasise they are not onerous for the industry.  The Cost of ‘opt-in’ – confusion over what is and isn’t included in our calculations Rice Warner’s estimate of $11 per client […]

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Opt-in, collective super fees, and the ministry of double standards

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The call by the Federal Government and the Industry Super Network (ISN) for a collective fee to be paid by super fund members to give them access to personal financial advice is a blatant demonstration of double standards, according to the Corporate Super Specialist Alliance (CSSA). A collective fee is a fee paid by all […]

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SPAA mostly pleased with FoFA revisions

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SPAA welcomes a number of positive revisions to the Future of Financial Advice reforms but waits for critical decisions on accountants’ exemption and intra fund & scaled advice. The Self Managed Super Fund Professionals’ Association (SPAA) has today welcomed most elements in the draft Future of Financial Advice (FoFA) legislation describing it as a common […]

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AFA: FoFA fails consumers

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The Government’s first tranche of draft legislation of the Future of Financial Advice (FoFA) reforms, released for public consultation this morning, fails Australian consumers and is clearly biased towards some segments of the industry at the expense of others, according to the Association of Financial Advisers (AFA). AFA CEO, Richard Klipin said the FoFA draft […]

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