Planners seeking FOFA guidance

With the final piece of regulation under the Future of Financial Advice (FOFA) reforms handed down, advisers are looking for guidance around implementation of ASIC’s requirements, says a consultant to licensees.

Many licensees and practices remain unclear about what is expected under the reforms and are yet to contemplate the implementation of requirements, according to Pathway Licensee Services.

“I think that, conceptually, advisers understand the spirit of the legislation but what they’re asking us for is tools,” Kate Humphries, general manager of Pathway, told ifa.

Pathway has released its FOFA Program and Pack for small, medium and large licensees, which ultimately provides guidance for the licensee and adviser market.

It consists of consulting services, new and updated policies and procedures and adviser manuals and tools, including a fee disclosure template, Pathway said.

The release of the FOFA Program and Pack follows ASIC’s release of RG 246 which outlines conflicted remuneration, the “final piece of the FOFA puzzle”, according to Humphries.

“I think that a lot of people have been sitting on their hands waiting for ASIC to provide further guidance,” Humphries said.

“We didn’t feel in a position to release the guidance that our clients have been asking for until we had the final piece of regulation from ASIC.”

Humphries said Pathway was planning to deliver guidance to the market nine months ago, but weren’t in a position to give “definitive” guidance without the final regulatory guidance from ASIC.

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