With the Future of Financial Advice (FOFA) reforms approaching, TressCox Lawyers has offered guidelines to compliance in the new regulatory environment.
Several aspects of advice and payment structures may need to be reviewed prior to FOFA, according to Levina Chim, associate at TressCox Laywers.
Chim said legislative changes typically result in changes to compliance manuals, making it important to train advisers in relation to these changes.
“In particular, note what products are exempted from the conflicted remuneration regime and what would consist of a conflict of interest,” she said.
Chim also said it’s important to train advisers about best interest obligation, where if advisers don’t have the expertise to provide advice on certain products and services, they need to warn their clients.
Statements of advice may need to be reviewed according to Chim, to ensure advisers demonstrate they’ve completed “reasonable investigation” for their clients.
SUBSCRIBE TO THE IFA DAILY BULLETIN
News
- 14 Nov 2018ASIC bans financial services representativeBy Eliot Hastie
- 14 Nov 2018Fintech should make advice ‘enjoyable’By Adrian Flores
- 14 Nov 2018Hayne commission driving adviser tech shiftBy Adrian Flores
- 12 Nov 2018InvestSMART launches maxed feesBy Sarah Simpkins
- 13 Nov 2018Advice demand soaring despite reputation hitBy Adrian Flores
- 12 Nov 2018Former premier, advisers sound alarm on sex discriminationBy James Mitchell
- view all
