A speech by ASIC Commissioner, Peter Kell, delivered at the Money Management and Financial Services Council Breakfast Series, 12 March 2013
Introduction
Good morning. Thank you to the FSC and Money Management for the invitation to speak about the upcoming Future of Financial Advice (FOFA) reforms.
As you know, ASIC has communicated extensively with the industry about FOFA. We recently released our final regulatory guides on approving codes and on conflicted remuneration. That completes the five regulatory guides we have produced on FOFA, being:
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best interests duty
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scaled advice
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fee disclosure statements (FDSs)
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codes
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conflicted remuneration.
On Monday 4 March the Government released further draft regulations for consultation on grandfathering. This means we are all on the home straight as we get ready for mandatory compliance on 1 July 2013.
Today I am going to focus on the broad aims of FOFA, rather than technical details. Sometimes these aims get lost in the consultation processes, trips to Canberra and the meetings with the lawyers.
I want to cover:
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Why do we need FOFA?
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How can we ensure successful FOFA implementation?
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Life insurance in a FOFA world.
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Finally, what will this mean for advisers and consumers in the future?