The federal government has announced its highly anticipated reforms to the Future of Financial Advice legislation, making good on its pre-election pledge.
In a statement issued today, Assistant Treasurer Arthur Sinodinos announced the government will present a number of amendments to parliament, consistent with the Coalition's red tape reduction agenda.
“The government supports the principles of FOFA. However, the previous government’s reforms went too far, creating unnecessary complexity, imposing significant burdens on industry and reducing the availability and increasing the cost of advice to consumers,” the statement said.
Among the amendments, the government will push for a complete removal of the opt-in requirement, describing this element of the existing FOFA reforms as a “burdensome layer of red tape”.
In addition, Senator Sinodinos announced that the government will amend the fee disclosure statement requirement so that it only applies to new clients from 1 July 2013.
The government will also exempt general advice from the ban on conflicted remuneration, amend the best interests duty to allow for the provision of scaled advice and amend grandfathering provisions to ensure that advisers can move between licensees while maintaining access to grandfathered benefits, ending the competition impediment currently in place.
Senator Sinodinos will be expanding on the FOFA changes as well as the Murray Inquiry at an upcoming business lunch in Sydney, sponsored by ifa. To reserve your table or seat click here.
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