The long-awaited Future of Financial Advice (FoFA) draft legislation is expected to be released within the next two weeks, according to a spokesperson for Financial Services and Superannuation Minister, Bill Shorten.
The spokesperson told riskinfo the draft legislation is intended to be launched as a single package for consideration, but that due to its size and complexity, the Minister’s department was considering splitting the legislation into more than one section, said to be easier ‘… from a legislative sense.’
The draft legislation for the FoFA reforms is the next stage in a process that commenced with the original FoFA announcement in April 2010, in response to the 2009 ‘Ripoll’ Review into Australia’s financial services sector. In April this year an information pack was released by Minister Shorten, following almost twelve months of Government and Treasury consultations with industry stakeholders.
Set to be introduced into Parliament during the spring session, industry sources have told riskinfo the release of the draft legislation may be the catalyst for a further round of lobbying and debate. The degree of further lobbying activity will be determined by what elements of the reforms are included in the draft legislation, such as the possible banning of risk commissions on individual superannuation advice.
On its release, much attention will also be given to how the finer details of the proposed reform measures, such as opt-in processes, will determine what mechanisms will need to be put in place by advisers, licensees, insurance companies and fund managers in order to comply.
