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."
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