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
News
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all
