The Australian Securities & Investments Commission will now consider applications for approval of Future of Financial Advice codes, providing a "flexible alternative to complying with the opt-in requirement," though single entity codes will not be considered.
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.
The corporate regulator has cancelled the licence of three Queensland-based fina...
The majority of the company’s advisers have transferred to another licence as ...
ASIC has fired a warning shot at real estate agents providing unlicensed advice ...
Get the latest news! Subscribe to the ifa bulletin
Get notifications in real time and stay up to date with content that matters to you.
