FOFA bills pass House of Representatives
The Government's Future of Financial Advice bills have passed the House of Representatives on the basis of the opt-in amendments announced earlier today by the Minister for Financial Services, Bill Shorten.
Those amendments offer financial advisers an alternative to the opt-in requirement by allowing the Australian Securities and Investments Commission to provide class order relief from the opt-in requirement to licensees and representatives who are signatories to an ASIC-approved professional code of conduct by 1 July 2015.
Shorten said an ASIC-approved code would need to include practices and conduct requirements that obviate the need for the opt-in requirement.
He said the amendment ensured that the opt-in requirement was linked in legislation to the class order relief for licensees and representatives.
As well, he said that under the proposal, the Government would introduce legislation into Parliament by 1 July 2013 that would enshrine the term "financial planner or adviser" in law.
The bills also contained some technical amendments with respect to the annual fee disclosure arrangement, particularly with respect to prospective fees.
The Federal Opposition has vowed to "fix" the FOFA legislation in the event it takes office in line with the amendments it took to the Parliament this week.
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