Industry will have until 1 July 2013 to comply with the new Future of Financial Advice (FoFA) legislation, Minister Bill Shorten announced today.
Mr Shorten advised that while the reforms will commence from 1 July 2012, as originally planned, the application of the provisions will be voluntary until 1 July 2013.
“This means that any business who wants to start complying with the reforms from 1 July 2012 will have the opportunity to do so,” Minister Shorten said. “From 1 July 2013, the entire industry will be required to comply.”
The Minister explained that the decision to review the implementation timetable came as a result of concerns raised by the business and financial planning community.
“This timetable also balances consumer needs, as it gives early industry movers the opportunity to provide commission-free products from 1 July 2012,” he said.
Mr Shorten added that the new mandatory commencement date would lower industry implementation costs because companies would be able to synchronise their FoFA and Stronger Super reforms preparations.
The FoFA legislation is currently awaiting debate in the House of Representatives.
This is what happens when inept politians interfere – they can never get anything correct first up and this causes uncertainy for all involved.
more proof this gov hasn’t a handle on what its trying to do
Another 12 months of Adviser companies with their head in the sand. Proof that big business is calling the shots and small practices are being screwed over once again.
I AM NOT SUPRISED BUT NOT RELIEVED EITHER.I ONLY HAVE A SMALL SUPER BASE ABOUT 400 MOSTLY GOING BACK TO OCCUPATIONAL, AND SOME IN A CLIENT BASE i BOUGHT THAT ORIGINATED THE SAME WAY.CHOICE DID SOME DAMAGE TO THE NUMBERS AND ONE OR TWO EMPLOYERS WHO DID NOT WANT TO RECOGNISE THEY NOW HAD A DEFAULT FUND DID SOME DAMAGE.
WHAT WORRIES ME MOSTLY IS IF I WRITE TO A LIFE CLIENT ON A SERVICE BASIS AND ASK THEM TO CONTACT ME IN RELATION TO SOMETHING THAT MIGHT BE AN ADVANTAGE TO THEM WHICH HAS BEEN EXPLAINED, THEY MOSTLY DONT BOTHER.
HOW ARE WE GOING TO GET THEM TO RETURN A LETTER THAT WILL SEEM TO BE A DIS ADVANTAGE TO THEM?
Once a dipstick, always a dipstick!
What more can one say!!
JUST READ THE STORY ON THE AFA GOING TO THE INDEPENDANTS.
wHAT CHANCE, THEY HAVE HAD TO SUPPORT LABOUR MOSTLY THROUGH THIS TERM WHILE MAKING INDEPENTANT NOISE.THEY’RE DEAD IN THEIR ELECTORATES AND DEAD IF THEY OPPOSE SHORTEN.HE IS A MAN WITH PM BRANDED ON THE ISIDE OF HIS FOREHEAD AND IS ABOUT AS TRUSTWORTHY AS A HIENNA WALKING FREE IN THE ZOO.
Well who ever thought the “reforms” WOULD come in on 1st July 2012?? Now if instead of trying to change the minds of idiot Shorten and his clown group called Labour Party, perhaps dealer groups will go and talk to the liberal party and explain to THEM what we’re about. Perhaps our so called “representative bodies” will start making some noise in the media also.
How thoughtfull Mr Shorten…….or are you just moving into damage control to salvage your reputation.
Too late…..your a hated man
You took a hard line to make a name for yourself and your ill considered proposals are now unraveling.
Clearly you are only concerned about your own political aspirations ….certainly not consumer needs.
Prepare to lose your seat at the next election, not just Govt.
I totally agree with Steve M. We, the Adviser/ Planner Practices now have a further 12 months to get a better result for EVERYONE – not just Bill (the grandstanding Dill). This “Future” they are playing around with is already out of control and can only get worse. Spouse of deceased member of Industry Super Fund (REST) still waiting for insurance and account balance SEVEN (7) months after members death. No Adviser/Planner bashing down their door so payment aint made. FOFA joke.
Make an issue of FOFA in the public arena i.e.media, and watch Labor start to see sense.It is one thing to lobby but the only thing political animals like the current Minister understand is bad press.Target him and watch the tide change,he wants the leadership and a bungled reform would not look good for him.
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