SPAA aims to exempt members from opt-in
The Self-Managed Super Fund Professionals' Association (SPAA) has announced it will reform its internal member code of conduct so that SPAA members are exempt from opt-in requirements when Future of Financial Advice (FOFA) reforms take effect.
Minister for Financial Services and Superannuation Bill Shorten last week announced that although opt-in requirements would remain a part of the FOFA reforms, financial advisers could obviate the need for opt-in if they were part of a professional organisation governed by an acceptable code of conduct, as determined by the Australian Securities and Investments Commission (ASIC).
SPAA chief executive Andrea Slattery said the group would work closely with ASIC to ensure its code of conduct meets the required standard to exempt members from opt-in.
"The FOFA reforms will result in the raising of standards across the financial planning profession, which is a positive step to boosting consumer confidence in advisors," Slattery said.
A statutorily imposed opt-in regime is unnecessary, because the introduction of the best interest duty, the banning of commissions, and the use of fee for service will assist in building trusted relationships with clients based on agreed terms with the client, according to SPAA.
AUTHOR
Staff Writer
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
