FOFA brings lingering uncertainty

financial planning industry brad fox best interests financial planning government and regulation financial advisers financial planners senator mathias cormann financial advice AFA FOFA association of financial advisers future of financial advice

26 July 2013
| By Mike Taylor |

It is likely to be at least another nine months before financial planners move beyond the uncertainties created by the Future of Financial Advice (FOFA) changes, according to the Association of Financial Advisers' (AFA) Brad Fox.

Having nearly completed two weeks of AFA roadshows, Fox confirmed that while most advisers had done their best to prepare for the new FOFA regime, there remained a fair bit of trepidation amongst those with more complex businesses about whether they had done enough.

He said newer, generally younger, entrants to the financial planning industry were less affected and less concerned because their businesses were focused on fee for service, with more nervousness being felt by older planners significantly impacted by the grandfathering provisions.

Fox said he believed it could take at least another nine months before planners would feel they had moved beyond uncertainty and fully understood the implications of FOFA on their businesses.

"These advisers are dealing with a period of significant change and their best interests are served by obtaining all the relevant information to give them clarity," he said.

While the FOFA legislation has now been passed by the Parliament, the Shadow Assistant Treasurer, Senator Mathias Cormann, has reaffirmed that a Coalition Government would fulfil its commitment to implement amendments, including with respect to opt-in, best interests and fee disclosure statements.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 4 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 20 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

6 days ago