The Assistant Treasurer, Bill Shorten, has introduced the second tranche of the Government’s Future of Financial Advice (FOFA) legislation in to the Parliament.
The second tranche of the legislation has focused on clients’ best interests and remuneration, and has offered what appears to be some concessions with respect to enabling financial planners to argue their case on some forms of remuneration.
However, the legislation also makes it clear that the interests of the client are primary and that licensees can be held just as responsible as financial planners for any breaches.
Where remuneration is concerned, the legislation is very specific on platform shelf space fees and non-monetary benefits
The Government’s initial announcement contained the incorrect explanatory memorandum which pertained to the first tranche.
