The Future of Financial Advice (FoFA) reforms require financial planners and licensees to comply with the following measures:
- Best interests duty – The best interests duty, including the “catch-all” provision (961B(2)(g) and 961E)
- Opt-in – The opt-in regime applies to all new clients (those who you sign up on, or after 1 July 2013).*
- Fee Disclosure Statements – you must send an FDS to all clients, including clients who joined before 1 July 2013.
- Conflicted remuneration – The ban on conflicted remuneration applies to all financial product advice (i.e. general advice and personal advice).
Some benefits have been grandfathered allowing financial planners to move licensees while retaining grandfathered remuneration, and in relation to the sale and purchase of advice businesses.
FPA Professional Ongoing Fees Code
ASIC has approved the FPA Professional Ongoing Fees Code, providing FPA members with an alternative to the opt-in laws when engaging clients in an Ongoing Fee Arrangement.
Download the FPA Professional Ongoing Fees Code
Resources for FPA members
The FPA Member Centre, contains a comprehensive FoFA toolkit with a practical series of easy reference guides on the key reform areas, to help you meet the requirements of FoFA. Within the toolkit, you’ll find fact sheets, Q&As, and many other helpful resources.
Also included is our booklet ‘Taking Other Steps’ – a detailed guide on how to meet the FoFA best interest requirements.
FPA Member Centre
FPA Code of Professional Practice
Adhering to the FPA Code of Professional Practice, may also assist you in meeting the obligations of FoFA. For a refresh, download the Code
We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any policy issues or concerns that affect you.