Grandfathering amendments become Law and SoA changes repealed
The Financial Planning Association of Australia (FPA) has welcomed registration of the grandfathering provisions today, which will see these regulations become law effective from tomorrow, Tuesday 16 December 2014.
According to Mr Mark Rantall CEO of FPA, the uncertainty around grandfathering was one of the biggest issues resulting from the disallowance of FoFA. Mr Rantall welcomed the considered agreement from both the Government and the Opposition around the provisions, saying these regulations will bring greater clarity to the industry.
“When FoFA was being developed we fought hard to remove the restrictions on trade and unfair market competition created by the original FoFA reforms.”
“Today’s finalisation of the grandfathering provision will enable all advisers to retain grandfathered benefits, regardless of the licensee they move to, fostering greater fairness across the financial planning profession.
Furthermore, the regulations now allow for grandfathered benefits to be transferred as part of a sale or purchase of a business, removing the previous restrictions on trade.
“We have long stated 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. Whilst outstanding issues still exist, today’s announcement brings us closer to this reality.”
The Government has also today repealed the Statement of Advice (SoA) changes put in place under the agreement they reached with the Palmer United Party and Independent Senators.
Mr Rantall concluded: “The repeal of the SoA changes is another good outcome for the profession today. We always believed that the changes put forward were already a requirement, and therefore a duplication. To this end, the appropriate consumer protections remain in place.”