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Govt repeals Palmer SOA changes

The Corporations Act regulation implementing Clive Palmer's desired changes to financial advisers’ statements of advice (SOAs) has been repealed.

Governor-General Sir Peter Cosgrove has today issued a legislative instrument – on the instruction of finance minister Mathias Cormann – which will repeal the changes to SOAs agreed to as part of the now-defunct deal with the Palmer United Party on FOFA.

Under the deal struck in July, the government agreed to enact a regulation requiring SOAs to explicitly list adviser requirements including the best interest duty, disclosure of fees, a 14-day cooling-off period for financial products and the ability for clients to change adviser instructions.

The FPA issued a statement welcoming the move, with CEO Mark Rantall describing the repeal as a “good outcome” for the financial planning profession.

“We always believed that the changes put forward were already a requirement, and therefore a duplication,” Mr Rantall said. ”To this end, the appropriate consumer protections remain in place.”

A legislative instrument has also been issued which will see the grandfathering amendments agreed to by the major parties become law.

Both legislative instruments will take effect from 16 December.