FSR should be tackled as compliance issue
By Fiona Moore
THE BEST way for financial advisers to tackle the 1,200 page Financial Services Reform Act is one bite at a time, says Clayton Utz’s director of financial services Karen Den-Toll.
Den-Toll realises this is a simple approach and planners will have their work cut out as they move ahead, as will Den-Toll in covering the topic in her session at the FPA National Convention.
However, her advice to the financial planning industry in preparing for the FSR legislation coming into effect in March 2002 is that while licensing and disclosure are key issues, underlying these requirements is compliance.
“Understanding the changes and putting the systems in place are the massive challenge,” she says.
Dell-Toll says bodies such as the FPA are providing terrific support for planners preparing for the start date next year.
However, her concern is for the smaller planners who may not have access to all the resources to help in their preparation.
“While from day one, many of the requirements don’t apply to planners, they will start to impact them,” Dell-Toll says.
She refers to aspects of the legislation such as the cooling off-periods, which financial planners are going to need to know how to communicate to their clients.
“The key message is, the FSR is on its way. It’s not a Bill anymore but an Act. Unless you’re going to understand it, it could affect your business.”
Karen Dell Toll will present alongside ASIC executive director financial services regulation, Ian Johnston, on Saturday at 9am.
Recommended for you
The strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
