FOFA opt-in amendments welcomed
The Government and the Federal Opposition have further tidied up the Future of Financial Advice (FOFA) legislation with a set of amendments passing the Parliament yesterday.
The bipartisan amendments follow on from the Federal Opposition last year disallowing the Government's regulatory changes in the Senate.
The most significant amendment, contained in the Corporations Amendment (Financial Advice Measures) Bill increases from 30 days to 60 days the period for advisers to send opt-in notices and fee disclosure statements to clients.
The change was welcomed by the Association of Financial Advisers (AFA) as a pragmatic improvement to the legislation that better enables advisers to ensure that all information in the statements is accurate and appropriate for their clients.
AFA chief executive, Brad Fox, said the AFA had consistently requested the measure be adopted and "we are pleased to see it pass through the Senate with bipartisan support".
He said the AFA would also like to see the period for clients to return their opt-in notices increase from 30 to 60 days as a further practical improvement to the legislation.
"Presently, consumers remain at risk of inadvertently not returning an opt-in notice before the deadline through travel, health, bereavement or other issues. To reinstate their relationship with their adviser will come at an additional cost to them for what could be a simple oversight," Fox said.
"We will keep this on our reform agenda."
Recommended for you
ASIC has launched legal action in the Federal Court against SQM Research and Interprac Financial Planning, citing alleged failures related to the Shield and First Guardian fund collapses.
While interest in private markets continues to grow, a panel of industry professionals have argued that data and reporting challenges in this sector are limiting accessibility for financial advisers.
Evidentia Group, a wholly owned subsidiary of Generation Development Group, has entered into a binding agreement to acquire consulting firm Encore Advisory Group.
MST Financial has announced the completion of its acquisition and integration of FIIG Asset Management from AUSIEX, bolstering its leadership team in the process.
