The Assistant Treasurer, Senator the Hon. Arthur Sinodinos, today announced proposed amendments to the Future of Financial Advice (FOFA) legislation.
Consistent with ASIC's stance during the introduction of other major policy reforms, we are taking a facilitative approach to the FOFA reforms until mid-2014 (refer: 13-007MR).
While we will take enforcement action where we see deliberate breaches of the new requirements or failure to make reasonable efforts to comply, our focus during the facilitative period will continue to be on education and assistance. Accordingly, we are working closely with financial advisers and product providers to ensure understanding and compliance with the FOFA requirements.
In light of this approach, ASIC will not take enforcement action in relation to the specific FOFA provisions that the Government is planning to repeal. For example, we will not take action for breaches of current section 962S of the Corporations Act 2001, which requires fee disclosure statements to be provided to retail clients with ongoing fee arrangements entered into before 1 July 2013.
ASIC will review and consult on its regulatory guides on FOFA once the proposed amendments have been made.