Treasury honing in on FOFA details
Treasury will begin targeted consultations on the implementation details of the Labor Government’s Future of Financial Advice reforms tomorrow.
Treasury has formed a ‘peak consultation group’ comprising industry and consumer representatives, as well as Australian Securities and Investments Commission (ASIC) officials, which will now work through key implementation issues.
Treasury has pointed to a particular emphasis on the implementation details of adviser charging rules and the introduction of a statutory fiduciary duty for advisers in this round of consultation, which will continue until the end of this year.
Treasury has stated that its “preference is to consult with major stakeholders at the same time so that a consensus view is reached, and so that each stakeholder can understand the views of other stakeholders”.
The peak consultation group was formed to that end, but additional ‘sub groups’ will also be formed to focus on specific issues.
Treasury will hold a second round of public consultation sessions early next year to discuss the outcomes of the consultation and give other stakeholders an opportunity to respond.
Treasury has confirmed it is working to implement the reforms in line with the original timetable. A public exposure of draft legislation and/or regulation is anticipated by mid-2011, following which further consultation will take place. Legislation is then expected to be introduced into Parliament in the Spring sittings in 2011, running from August to December.
The majority of the reforms, including the prospective ban on conflicted remuneration structures, the new adviser charging regime, and statutory fiduciary duty obligations, will commence on 1 July 2012.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
