FOFA opt-in and FDS amendments welcomed

financial-planning/AFA/brad-fox/

4 March 2016
| By Malavika |

The Association of Financial Advisers (AFA) has welcomed the bipartisan support for amendments to the Future of Financial Advice (FOFA) Streamlining Bill 2014, under which financial advisers now have 60 days to send fee disclosure statement (FDS) and opt-in notices to clients, extended from the previous 30-day limit.

The Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 was passed on March 1 with support from the Federal Government and opposition, with the Bill expected to be signed by the Governor-General this month.

Under the amendments, advisers will have the option to change their FDS and opt-in processes to utilise the additional 30 days if they wish.

AFA chief executive, Brad Fox, said the amendment achieved two of the outcomes the association had sought from Parliament — advisers could now ensure the information in client statements were accurate, and they had more flexibility within their practices.

He also said the AFA would continue to advocate for more a practical timeframe for clients to return their opt-in notices.

"The AFA strongly believes this measure is key to ensuring consumers don't get opted out against their wishes and therefore maintain the protection and advice they need. This issue will remain on our reform agenda," Fox said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

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

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS