Humphries told ifa she had been concerned about putting any guidance out before the correct regulatory guidance was available.
Now that the “final piece of the FOFA puzzle” is out, RG 246 on conflicted remuneration, “even with the ambiguity that remains, we have a good enough idea to proceed,” she said.
“Our clients have been waiting and asking us, ‘When are you going to go ahead and start changing our policies and procedures?’” Humphries explained.
“The first of July 2013 is very close and many licensees and practices are still unclear about what is expected under FOFA and [they] have not implemented the requirements.”
Humphries said the FOFA clock “is now ticking very loudly” and as a result Pathway (a subsidiary of netwealth) has released a FOFA Programme and Pack for small, mid-size and large licensees, taking the latest regulatory guidance into account.
The offer consists of consulting services as well as new and updated policies and procedures, adviser manuals and tools such as a fee disclosure template, she said.
“We’ve tried to prepare documentation aimed at both the licensee and adviser level,” she said.
“Good planners know how to service their clients and run their business, they just want to make sure the ‘I’s are dotted and the ‘T’s are crossed so they can let their clients know in writing and get on with their business.”
Yes ang, it certainly seems like it…unless some of the non-aligns merge to create a bigger force that have the scale and resources to create a fifth pillar in wealth. Seems pretty obvious to me that ASIC finds it hard to policy the thousands of independant smaller entities and consolidation is one of their objectives.
gerry agree but its here & we need to comply. This will further reduce the number of IFA’s
The playing field has changed for ever (some parts for the better) being IFA is getting next to impossible . i am sure what is left of the non alligns will be reviewing their positions and jumping ship. Pointless being a great strategic advice then getting nailed for non-complaince matter such as Not having everything FOFA such error in a FDS. its all to late Industry based funds/banks/Insuarance companies have won.
Remember the money is the distrubution channels ie product flogging & not giving staretgic advice the gov’t has got in wrong. it like people complainiing about the douoply of coles & woolies!!!!!!
and ASIC thinks their resources are already stretched…just wait until these extra requirements are in place. Then we’ll get headlines like “adviser banned for 12 months for not sending out FDS” “adviser bankrupt because clients failed to return sufficient opt-in letters” “Licensee slapped with enforceable undertaking for not enforcing FDS and opt-in sufficiently”…could get messy out there. There must be a better way, hopefully will happen after September.