The delay of the Parliamentary vote on the Future of Financial Advice (FoFA) reform Bill until at least February 2012 is prompting a growing number of industry stakeholders to question whether there will be enough time for advisers to be ready for the intended commencement date of the new reforms.
Our latest poll question asks:
Do you believe your advice practice will be ‘FoFA ready’ by 1 July 2012?
Numerous advisers have told riskinfo that, unlike many of their colleagues, they are not greatly concerned about the changes they will need to make to their business to adjust to some of the key FoFA reforms from 1 July 2012.
But for as many advisers who say they have no real concerns over both the proposed FoFA reforms and the timing of their implementation, there are an equal or greater nunber who tell us they cannot see how they will be able to efficiently operate under FoFA or how their business will cope with the changes from 1 July. At the moment, they are not ready.
Elsewhere, there is concern that has been expressed by life companies and dealer group licensees that there is still insufficient detail accompanying the release of the draft legislation to enable them to confidently commence the adjustments to their administration processes that will be required to accommodate the proposed FoFA reform measures, particularly opt-in.
This concern about lack of detail has already prompted calls to delay the introduction of the reforms, assuming the legislation is actually passed in February or March 2012.
But irrespective of whether you support or oppose the more contentious elements of FoFA, particularly opt-in and the future banning of all investment and super product commissions, do you think your practice will be ready to launch out of the FoFA gates by 1 July 2012?
We understand there would be few advisers, if any, who will claim to possess all the information they will need in order to forge ahead with the process and structural changes that may be required of their business. But given what you know at this point, do you think your practice will be FoFA ready by 1 July 2012?…
“But irrespective of whether you support or oppose the more contentious elements of FoFA, particularly opt-in…”
Why have we as an industry given up on opposing Opt-In? It is unrealistic and fanciful. Let fiduciary obligation take care of that!
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