The data from both licensees for each client must be matched, which means many of the processes cannot be automated, said Mr Stewart, principal of Benchmark Consulting.
It will take at least three months until the administrative demands of the Future of Financial Advice (FOFA) reforms begin to “settle down”, he said.
“I don’t think there’s a lot of planners out there who are really, truly FOFA-ready – it’s impossible to be so,” said Mr Stewart, pointing to the ‘last minute’ nature of the regulation.
Benchmark Consulting made the decision to reduce its client base 18 months ago, which is making the transition much less painful, he said.
“I don’t know how [boutique planners with a lot of clients] are going to cope with it, quite frankly,” he said.
But the problem is just as stark for the larger dealer groups, some of which have written to the Australian Securities and Investments Commission to request a six-month extension for FOFA compliance, according to Mr Stewart.
“Everyone’s trying to hunker down and get it all into place, but there’s quite a long way to go for a lot of them yet,” he said.
I think i might have to do a IT degree to stay in this industry.
Its not just the FDS, its making sure you data feeds and the inputed info is 100% correct. You have all platforms with correct info, clients that have opened up things at different dates, how detailed do you want to go, based on the time.This can be a endless costly task. Come on Rudd if you think Abbotts a fool like you say, call a election, he has promosied to simplifly our complex businesses already, you have offerered us donut
My hat off to anyone who is FOFA ready 100%. I feel as though we are all being strangled gently and being told it is all in your head. $7 for a FDS. “Tell them they are dreaming”
Sam – what car sales organisation requires a buyer to pay an ‘annual ongoing fee’ to service the car? You pay an invoice for the service and that’s it until next year. The invoice shows what the client paid and what they got for the price – which is the information in an FDS. Your analogy is a bit skewed.
i dont think its only boutiques, this job you need a fulltime person to make sure you are 100% compliant.
Madness SAM madness. Exactly, WHO allowed this to happen? WHAT toothless tiger, useless industry body with ZERO clout or influence let this happen?
Yep….the FPA.
I was asked by a client yesterday what a FSD was and why they needed it. I explained it like this.
Imagine you bought a new car and you took it to be serviced twice a year, Each time it was serviced they did a safety check made a few tweaks here are there, gave it a wash and polish and then gave it back to you to drive and enjoy. And then each year they wrote to you telling you how much they earned providing this service to you and what the services they provide to you. “Thats crazy” she said “what a waste of time and energy” “so these is not extra fees this is just what you earned” YES. and the silly thing is every car dealer has to do it, every year for every car they sell even if they didn’t manufacture the car! She went onto say “who can afford to do that” “Who dreamed up such a stupid idea?” “in the name of consumer protection” I said the Labout Gillard Government, she walk out in total disbelief, How did we let this happen?
Thankls again Bill.
and this all to achieve want?