Wednesday, 20 June 2012
The Financial Planning Association (FPA) welcomes the
clarity provided through the passing of the Future of
Financial Advice (FoFA) reforms by the Senate today.
Effective as law from 01 July 2012, FoFA compliance will
become mandatory for financial planners and licensees from
1 July 2013, following a 12-month transition period.
While the FPA continues to oppose FoFA's Opt-In and
additional fee disclosure provisions for existing clients,
it believes that the final shape of the legislation
delivers a sensible outcome for Australia's professional
financial planners and their clients.
According to FPA CEO, Mark Rantall:
"Although there is still detail to be worked through in
terms of regulatory guidance and not all of our amendments
were adopted , the FPA welcomes the passing of the reforms
as it allows the industry to move forward and get on with
implementing changes with greater clarity. The FPA and our
members have continued to support the intent of the reforms
- to increase the access to, and transparency of, the
financial advice provided to for all Australians.
"We also welcome the Minister's urgency in supporting the
measure to protect the term 'financial planner'. The
legislation to limit the use of this term to those with the
right qualifications will ensure higher standards are set
for financial planners and provide further confidence for
Australians seeking financial advice from a trusted
The FoFA reforms signal a new chapter in the security and
protection of the financial well-being of Australians and
facilitate the FPA's mission to help financial planning
evolve into a universally respected profession.
Parliament ultimately considered a FoFA bill that was
heavily amended from the original, including changes that
removed or modified onerous aspects of the tabled Bill.
Mr Rantall acknowledged the Government, the Opposition and
the Independents for their open collaboration, hard work
and contribution to the passing of these reforms in their
"We now have the opportunity to fast track a fundamental
realignment of financial planning in this country, driven
by a clear resolve to place the interests of Australian
consumers first and having financial planning recognised as
Regulations and ASIC guidance on how financial planners are
to comply with FoFA will be rolled out in the coming weeks
and months. The FPA will continue to communicate with
members, provide useful resources such as the Members Only
Fee-for-Service Toolkit and run practical educational
workshops to help them implement FoFA in their businesses.