Financial Planning Association chief executive Mark Rantall welcomed the draft amendments on conflicted remuneration under the Future of Financial Advice reforms, released by ASIC yesterday.
Rantall hailed the regulator's approach as a ‘common sense compromise’ between the intentions of FOFA and the practical implications of Australian investors and the financial planners.The proposed regulations will enable planners to provide advice and recommendations on switching investments and products within a platform with certainty to their clients, he stated.
Rantall also welcomed the delayed start date, allowing for certain retrospective payments to be treated separately to new rules, which ban conflicted remuneration to advisers from product providers and administrative platforms.
“We believe the transition period to 1 July 2014 for all licensees/dealer groups is in order to allow an orderly and appropriate transition to the new rules. This sensible arrangement would allow all financial planning businesses to transition and re-structure in a manner that does not adversely impact their clients nor their business," Rantall said.
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