The Financial Planning Association of Australia The Financial Planning Association of Australia

ASIC fee disclosure guidance pragmatic, but work needed to fix costly double-up

The Financial Planning Association (FPA) Chief Executive Officer Mark Rantall has welcomed ASIC’s release today of its regulatory guide to the implementation of fee disclosure statements, noting the common sense approach adopted by the regulator for most disclosure obligations from July 1, 2013.

“The FPA welcomes the ASIC regulatory guide as a largely common sense approach to the many new disclosure obligations faced by our members from July 1.

“However, the FPA remains concerned by the introduction of a fee disclosure statement for existing fee paying clients. This obligation is cumbersome and creates costly duplication, and we would argue for further discussion and a quick resolution to the downside consequences of this approach in its current form.

“On the positive, the FPA is pleased with ASIC’s approach to introduce so-called “no-action” clauses in the regulatory guide as a pragmatic approach to resolving non-compliance where financial planners are unable to meet their obligations through no fault of their own,” Mr Rantall said.