Speaking at the FPA roadshow in Sydney yesterday, FPA general manager of policy and conduct Dante De Gori told the audience that the “biggest issue” with the opt-in obligation is the 30-day rule.
“In terms of helping [advisers] with that process, one of the things you should consider of course is what clients of yours are actually captured by the opt-in obligation,” Mr De Gori said.
“Make sure those dates sorted out.”
Mr De Gori added that communication will be key to engaging with clients during the opt-in process, especially for clients who may be slow to respond.
“Communicate before you send out, communicate when you send them out, and communicate after you send them out,” he said.
He added that if advisers know which of their clients are slow to respond to communication, they should give them attention first.
“It does mean you have to research the anniversary date, but it also means that you are dealing with those clients and you don’t miss them and [that you comply],” Mr De Gori said.
“Also, remember that you don’t have to have [a response] back in writing; it just has to be recordable.
“The only thing you can’t do is verbal. So make sure you do consider that and are using things like emails,” he said.
Mr De Gori also updated FPA members on the progression of the association’s own opt-in code which is still being considered by ASIC.
“That process is still ongoing and that is one of the reasons I am telling you about opt-in and you are ready to comply with those obligations from 1 July,” he said.
“Should the opt-in code get approved, then that means effectively [you won’t have to comply at all] and you will just need to comply with the FPA code and effectively the 30-day rule won’t apply. You will have a three-year cycle for any ongoing pre-arrangement,” Mr De Gori said.
Where is our leadership on this? The FPA should be banging heads in Canberra. With only 1 month to go, ASIC still haven’t approved a single code and we have this ridiculous situation where all of our clients are forced into seeing their advisers in a 30 day window every year. It is utter nonsense. Rather than working constructively with the financial planning community ASIC are deliberately trying to make our life hell and disrupt our client relationships. It is a disgrace and we need leadership from the FPA – Urgently!