We welcome the Liberal Government’s introduction of a more client-favored financial planning regime, which is in line with our relationship-based approach. Compliance with these new ‘Future of Financial Advice’ (FoFA) laws became mandatory on 1 July this year. Key measures include:
- A ban on advisor commissions for most financial products
- Advisors are now obliged to place the best interests of their retail clients ahead of their own when providing personal advice
- Advisors must renew their clients’ commitment to ongoing fees every two-years
It should be noted that there is currently some ‘political football’ over these reforms between Labor and Liberal factions. They were introduced by Labor, and the Government is now attempting to unwind much of them. Watch this space for developments.