The Association of Financial Advisers (AFA) has signaled it will be establishing a Future of Financial Advice (FOFA) implementation working group aimed at assisting members to accommodate regulatory changes as they are finalised by the Australian Securities and Investments Commission (ASIC).
Establishment of the group was confirmed by AFA chief executive Richard Klipin, and has come amid continuing concern at the pace with which ASIC is building the regulatory framework around the FOFA legislation.
There is particular concern that the regulator has yet to detail arrangements around the key issue of the grandfathering of volume bonuses – something which will impact the commercial models underpinning many financial planning practices.
As well, there is concern that the proposed 1 July 2013 implementation date for the provision of fee disclosure statements means planners will already need to be compiling the information for some affected clients.
Klipin said the FOFA implementation working group would be inclusive of licensees and was intended to ensure an appropriately coordinated approach to both understanding and meeting the new regulatory standards.
