Financial advisers have been reminded the first-round deadline for the Future of Financial Advice (FOFA) reforms has arrived, which means fee disclosure statements should be ready by today.
Regardless of whether proposed changes to FOFA go ahead, advisers should have their first batch of fee disclosure statements prepared by now, according to The Fold Legal’s managing director, Claire Wivell Plater.
“This is the only imminent deadline that will be affected by the proposed FOFA amendments.”
If the Government’s proposed changes proceed, fee disclosure statements (FDSs) will only have to be lodged for clients who sought advice after July 1, 2013.
However, the current requirements mean those earlier statements would have already been prepared.
Wivell Plater said advisers should also make sure they have sorted non-conflicted fee arrangements for clients who first join a platform after 30 June 2014 and for all new investments by non-platform clients made after 30 June 2014.
“What this means is that, unless it’s grandfathered, after 30 June 2014 remuneration can’t be received from a product provider without the client’s clear consent and direction,” she said.
“And all employee remuneration arrangements must be un-conflicted, regardless of when the employee began working for you.”
