Govt and Labor agree on specific FOFA changes

FOFA
The Federal Government has confirmed reports that it has succeeded in reaching agreement with the Federal Opposition to reinstate key elements of its Future of Financial Advice (FOFA) changes including grandfathering.

The Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, confirmed today that the Government has given notice of a motion in the Senate to give effect to the changes which mean that specific elements of the regulations disallowed by the Senate will be remade.

These are:

• amendments to the grandfathering provisions that will address unintended consequences, and facilitate competition in the financial advice industry, by enabling advisers to move licensees with their clients whilst continuing to receive grandfathered remuneration;

• amendments to the training and education provisions that specify that benefits in relation to education and training that relate to conducting a financial services business are not conflicted remuneration;

• amendments to the stamping fee provisions that clarify its application to capital raising activities and broaden its application to include investment entities;

• amendments to the accountants’ certificate renewal period to provide that the extended two year renewal period also applies in relation to FOFA; and

• amendments to the brokerage-related provisions of FOFA to extend the provisions to products traded on the ASX24.

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