FOFA confusion remains among advisers
Financial planners and advisers remain confused on how to exactly comply with Future of Financial Advice (FOFA) reforms, and what the ramifications are for their businesses, the Financial Planning Association (FPA) said.
FPA chief executive, Mark Rantall, said planners need clarification on various aspects of FOFA, along with recommendations that have arisen from various inquiries including the Parliamentary Joint Committee and the Financial System Inquiry.
"The FOFA reforms have gone through a number of iterations over the past three years and there's still confusion over what it is exactly that financial planners need to do to comply," Rantall said.
Advisers remain confused over the technicalities of opt-in requirements, best interests' duty, and financial disclosure statement requirements, and the notice periods around that.
The comments come as the Australian Securities and Investments Commission (ASIC) announced the facilitative compliance approach it had taken to FOFA changes due to transitionary issues will end on 1 July.
ASIC Commissioner Greg Tanzer said this is only in relation to the disallowed FOFA provisions.
Rantall said the FPA is conducting roadshows in April, May and June to bring clarity on the reporting dates to advisers, and help planners understand what their requirements are.
AUTHOR
Malavika Santhebennur
Recommended for you
Despite the government agreeing to replace SOAs with CARs, the FAAA and SIAA believe greater streamlining of documentation is needed for the change to have a positive impact on advisers.
There are “multiple black swan events” threatening the financial advice industry currently, according to the FAAA’s Phil Anderson, potentially running up the compensation bill for advisers.
Former national business growth manager at AMP Advice has taken a new role at Sequoia Financial Group.
With the ESG label often causing confusion among investors, Nanuk Asset Management has encouraged financial advisers to use more plain, specific language with their clients.
