Future of Financial Advice (FoFA)
The Future of Financial Advice (FoFA) reform package was first announced by the ALP Government in April 2010, as a result of the Ripoll Inquiry report of 2009. Consultation on the package continued for well over a year before the first instalment of the draft legislation was released in August 2011.
Further consultation and parliamentary inquiries continued before the legislation was finally passed in the House of Representatives in March 2012. The FoFA legislation became law in June 2012 and came into effect for most advisers on 1 July 2013.
Following the election of the Abbott Government in 2013, FoFA Amendments were announced with some coming into force by regulation on 1 July 2014 – and later disallowed by the Senate in November 2014.
FoFA has had a significant impact upon the financial advice profession through the introduction of measures such as ‘best interest duty’ and the banning of conflicted remuneration. The AFA has been an active participant throughout this debate, having made many submissions to parliamentary inquiries, Treasury and ASIC.
ASIC And Other Reports on FoFA
In November 2019, ASIC issued Report 636 on compliance with the Fee Disclosure Statement and Opt-In Notice obligations. Please see the following report and tips on compliance with the obligations: