The Australian Securities & Investment Commission will now consider applications for approval of Future of Financial Advice codes, providing a "flexible alternative to complying with the opt-in requirement."
The much-anticipated guidance confirms that ASIC will accept an application for approval of a code with limited content - for the purposes of FOFA only - offering a checklist of code content that "obviates the need" for complying with the opt-in requirment.
"A FOFA code approved under our policy will provide a flexible alternative to complying with the opt-in requirement," said ASIC Commissioner Peter Kell.
"In particular, under a FOFA code ongoing client arrangements may not terminate in the same way that they do under the law."
However, the guidance also makes clear that "approved FOFA codes must meet substantially the same policy objective as opt-in: that is, they must promote client engagement and ensure clients do not pay ongoing financial advice fees where they are receiving little or no service."
ASIC will publish guidance on the FOFA conflicted remuneration provisions on Monday 4 March.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Jan 2019Advisers to suffer ‘horrendously’ from FASEABy Sarah Simpkins
- 18 Jan 2019Praemium FUA up 14%, reveals platform upgradeBy Adrian Flores
- 17 Jan 2019ASIC takes court action against former adviserBy Adrian Flores
- 16 Jan 2019NAB FP seeks resolution of false witness investigationBy Adrian Flores
- 16 Jan 2019High demand for advisers and paraplanners in 2019By Adrian Flores
- 16 Jan 2019Foreign adviser qualification standards finalisedBy Adrian Flores
- view all