Government to re-instate elements of FOFA reforms
The Financial Planning Association of Australia (FPA) welcomes today’s announcement that the Government and the Opposition have agreed to re-instate some elements of the FoFA reforms. In particular, the FPA is pleased to see the reintroduction of the grandfathering provision.
According to Mark Rantall, CEO of the FPA, the reintroduction of the grandfathering provision is particularly important to address unintended consequences from the disallowance of FoFA. It will ensure competition in the financial industry by enabling advisers to freely move licenses.
“Today’s announcement will ensure advisers can move licensees, whilst continuing to receive grandfathered remuneration. It is understood that this will also include the sale and purchase of advice businesses, something the FPA has and will continue to advocate for, in the drafting of the regulations.
“Our position has always been that FoFA should provide a better financial future to all Australians and we have advocated that the laws be beneficial for consumers, but also workable for financial planners.
“Grandfathering plays an important role in maintaining competition and its reintroduction is welcomed by the FPA.”
Additionally, amendments have also been made to:
- Training and education provisions
- Stamping fee provisions
- The accountants’ certificate renewal period
- The brokerage-related provisions
The Government has given notice of a proposed motion in the Senate. All other elements of the Government’s amendment agenda remain disallowed and the original FOFA legislation will stand.