The Government has introduced the Corporations Amendment (Future of Financial Advice) Bill 2011 into Parliament.
The Bill contains the first stage of the FOFA reforms which will commence on 1 July 2012.
The reforms focus on the framework for the provision of financial advice including:
- a requirement for providers of financial advice to obtain client agreement to ongoing advice fees and enhanced disclosure of fees and services associated with ongoing fees; and
- enhancement of the ability of the Australian Securities and Investments Commission (ASIC) to supervise the financial services industry through changes to its licensing and banning powers.
A supplementary Bill will contain reforms including the introduction of a requirement for advisers to act in the best interests of clients and a ban on conflicted remuneration, including commissions, volume payments and soft-dollar benefits.
