The Australian Securities and Investments Commission will adopt a facilitative approach in working with licensees, following the disallowance of the Future of Financial Advice regulations.
In a brief statement issued by the regulator late on Wednesday 19 November, ASIC said it would take ‘a practical and measured approach to administering the law as it now stands…’ The regulator gave a seven-month timeframe within which it would take ‘a facilitative approach’, indicating a deadline of 1 July 2015 for full compliance.
A motion to disallow the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 was passed by the Senate on Wednesday (see: Senate Takes Axe to FoFA Amendments). The regulations enacted the Government’s amendments to FoFA, including removing the need for advisers to comply with the opt-in requirement and the catch-all step in the best interests duty safe harbour test. As a result of the disallowance motion, the regulations no longer apply, effective immediately.
The regulator said it would take into account that many Australian financial services licensees would need to make systems changes. ‘ASIC recognises this issue may arise in particular areas, including fee disclosure statements and remuneration arrangements,’ the regulator said in its release.
In January 2014, when the amendments were first announced by then Assistant Treasurer, Arthur Sinodinos, ASIC said it would take a ‘non-enforcement position’ on those elements of the legislation to be changed through regulations.
