Key Documents
On 26 April 2010, the Government announced the Future of Financial Advice (FOFA) reforms. The reforms are aimed at enhancing consumer protection and raising trust and confidence in the financial advice industry.
On 29 August 2011, the Government released the first tranche of draft legislation implementing these reforms entitled Corporations Amendment (Future of Financial Advice) Bill 2011. The first tranche covered statutory best interests duty, compulsory renewal requirement (opt-in), and the enhancement of ASIC’s powers.
The exposure draft and EM are being released today form the second and final tranche of draft legislation on the FOFA reforms. The second tranche of the legislation covers the provisions relating to conflicted remuneration including the ban on commissions and other volume-based payments to financial advisers, the ban on soft-dollar benefits to financial advisers, the ban on volume-based shelf-space fees to product platforms and ban on asset-based fees involving leverage.
