FOFA opt-in and FDS amendments welcomed
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.
AUTHOR
Malavika Santhebennur
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