ASIC releases FOFA codes guidance

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.

ASIC releases FOFA codes guidance
ifa logo


The ifa Excellence Awards are back in 2021 and nominations are now open! This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021!

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.