FOFA clock now ticking 'very loudly'

Advice businesses are beginning to clamour for assistance in preparing for upcoming Future of Financial Advice (FOFA) reforms, according to Pathway Licensee Services general manager Kate Humphries.

Humphries told ifa she had been concerned about putting any guidance out before the correct regulatory guidance was available.

Now that the “final piece of the FOFA puzzle” is out, RG 246 on conflicted remuneration, “even with the ambiguity that remains, we have a good enough idea to proceed,” she said.

“Our clients have been waiting and asking us, 'When are you going to go ahead and start changing our policies and procedures?'” Humphries explained.

“The first of July 2013 is very close and many licensees and practices are still unclear about what is expected under FOFA and [they] have not implemented the requirements.”

Humphries said the FOFA clock “is now ticking very loudly” and as a result Pathway (a subsidiary of netwealth) has released a FOFA Programme and Pack for small, mid-size and large licensees, taking the latest regulatory guidance into account.

The offer consists of consulting services as well as new and updated policies and procedures, adviser manuals and tools such as a fee disclosure template, she said.

“We’ve tried to prepare documentation aimed at both the licensee and adviser level,” she said.

“Good planners know how to service their clients and run their business, they just want to make sure the ‘I’s are dotted and the ‘T’s are crossed so they can let their clients know in writing and get on with their business.”

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