A statement issued just now from finance minister Mathias Cormann reveals that the two major parties have agreed to progress a slightly amended FOFA through the parliament before year’s end, delivering crucial relief on the issue of grandfathering.
The statement explains that regulations that were disallowed will now be re-made to include:
- “amendments to the grandfathering provisions that will address unintended consequences, and facilitate competition in the financial advice industry, by enabling advisers to move licensees with their clients whilst continuing to receive grandfathered remuneration;
- amendments to the training and education provisions that specify that benefits in relation to education and training that relate to conducting a financial services business are not conflicted remuneration;
- amendments to the stamping fee provisions that clarify its application to capital raising activities and broaden its application to include investment entities;
- amendments to the accountants’ certificate renewal period to provide that the extended two year renewal period also applies in relation to FOFA; and
- amendments to the brokerage-related provisions of FOFA to extend the provisions to products traded on the ASX24.”
All other elements of the government’s amendment agenda will remain disallowed and the original FOFA legislation will stand.
Grandfathering is for grandfathers of our industry. We’ve had years to prepare. I have no commission clients (excl. risk)and am 100% fee for service (flat dollar fees) and get every client to opt in annually and also provide our version of an FDS. Very easy, adds 3 minutes to review preparation work. Took a while to get to this point, but we’ve had ample warning!
If you can’t embrace this, get out.
[quote name=”Craig”]When asked what FOFA stood for, Jacqui was heard to say:
F*#k Off Financial Advice ??[/quote]
it actually stands for F***ing Over Financial Advisers!!
FOFA IM SORRY I WORK FOR AUSTRALIAN SUPER WHAT IS FOFA?
Indeed. my comments from last week still apply. What are the AFA going to do about this??
This will add further stress to provide good, independant advise to my clients and at the end of the day, will do nothing, there will always be anther STORM FIANANCIAL, or scum bag doing some financial deal, stealing pensioners hard earned money>
Surely their is an overpriced online FPA course that will fix this problem? They fix everything else.
When asked what FOFA stood for, Jacqui was heard to say:
F*#k Off Financial Advice ??
yes, it looks like we have to wait until this year is over to find out the final verdict and lets just hope there won’t be any back lashes after that…
Phew, good to see sense has prevailed and the annual junket, err sorry, “education and training” conference is squarely back on the protected list.
So much for the coalition for common sense.
[quote name=”JasonJM”]Put the IFA back in their box and move to apply the FDS and Opt-In requirements to Industry Super Funds.
Watch how quickly they’ll realize those elements of FOFA do nothing for consumer protection and will only add to the cost of advice.[/quote]
spot on Jason – reckon bill would jump at that – back Jacqui wouldn’t understand the difference here.
Put the IFA back in their box and move to apply the FDS and Opt-In requirements to Industry Super Funds.
Watch how quickly they’ll realize those elements of FOFA do nothing for consumer protection and will only add to the cost of advice.
We have good leadership hobbled by incompetents. I sincerely trust that more changes will follow.
Can anyone clarify whether the grandfathering provisions include the buying & selling of grandfathered commissions???
Hardly a comprehensive statement from Mr Cormann!
Can the government please just get their act together. All of this back and forth is not good for consumer or adviser relations.
what bullshit – and they think that is a happy compromise.
they are still playing with themselves
@Damian – While I agree with your sentiment – no it wouldn’t. Because she wouldn’t understand it.
At last some sense from our politicians, bet that pissed off Lambie
I love this FoFA stuff. I am not sick of it at all.