More FOFA amendments extend FDS timeframes
Some further flexibility had been injected into the Future of Financial Advice (FOFA) regime with the Parliament agreeing to amendments which extend the timeframe for advisers to send renewal opt-in notices and fee disclosure statements to clients.
The amendments were passed by the Senate last week and represent the culmination of some strong lobbying efforts on the part of planning organisations including the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA).
The amendments also fell within the broad agreement between the Government and the Labor Federal Opposition aimed at tidying up elements of the FOFA regime.
The changes mean that the timeframe with respect to fee disclosure statements and renewal notices has been extended from 30 to 60 days.
The amendments have also clarified the limitations on the degree to which superannuation funds can pass through the cost of providing financial advice, making it possible for the regulator to view intra-fund advice as conflicted in some circumstances.
The changes passed by the Senate entail a note explaining: "The expression ‘intra-fund advice' is often used to describe financial product advice given by a trustee (or an employee of, or another person acting under arrangement with, the trustee) of a regulated superannuation fund to its members, where that advice is not of a kind to which the prohibition in section 99F of the Superannuation Industry (Supervision) Act 1993 applies. (Section 99F of that Act prohibits trustees of regulated superannuation funds from passing on the cost of providing certain kinds of financial product advice in relation to one member of the fund to another.)"
However, the amendments allow for the addition of the words: "The regulations may prescribe circumstances in which, despite a provision of this section, all or part of a benefit is to be treated as conflicted remuneration".
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
