Future of Financial Advice Reforms (FOFA) amendments released for public consultation

The Assistant Treasurer, Senator the Hon Arthur Sinodinos AO, today announced that the Government has released for public consultation draft regulations and legislation to enact its announced reforms to FOFA.

Consistent with the Government’s announcement on 20 December 2013, key amendments include:

  • removing the opt-in requirement;
  • streamlining the annual fee disclosure requirements;
  • amending the best interests duty to allow for scaled advice;
  • exempting general advice from conflicted remuneration; and
  • amending grandfathering to allow for adviser movements.

Draft legislative amendments and draft regulations giving effect to the Government’s announced changes are available at the FOFA website.

The consultation process will be open for a period of three weeks, with submissions closing on 19 February 2014.

Following the consultation process, the Government anticipates that regulations will be made at the end of March 2014 and that a Bill will be introduced into Parliament in the 2014 autumn sitting period with passage scheduled for the winter sitting period.

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