With the Future of Financial Advice (FOFA) regime set to begin on Monday, the Industry Super Network (ISN) says the financial planning industry has had plenty of time to contemplate the reforms and has left preparations to the last minute.
Industry Superannuation Network chief acting executive Matthew Linden said the details of the legislation have been known “for a long time”.
“No doubt all of them will be making efforts at the last minute to make sure they’re fully compliant,” he said.
“We’re confident there’s been enough notice given about the impact of the reforms, what they mean, and how practices will need to change,” said Mr Linden.
He added that research conducted by Rice Warner Actuaries on behalf of the ISN suggests the reforms will be “overwhelmingly positive” and “will put downward pressure on the cost of financial advice”.
The new regulations will open up many new business models for advisers, said Mr Linden – particularly when it comes to scaled advice.
“[Scaled advice] is an exciting opportunity for many in the financial advice industry to be in a position to provide advice to more Australians – provided it’s affordable,” he said.
There are amendments in the Stronger Super bills, passed on Monday, which are designed to provide more certainty around the provision of scaled, or ‘intra-fund’, advice, said Mr Linden.
“With scaled advice there are often instances where there may be personal advice required, [in which case clients are referred on to a personal advice provider] – and that falls under the auspices of the new FOFA rules,” said Mr Linden.
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