The majority of financial advisers say they remain in the dark when it comes to knowing whether they will be ready in time to implement Future of Financial Advice reforms into their practice.
85% of advisers in our latest poll say they either will not be ready for FoFA, or are unsure whether they will be ready for the introduction of the reforms from 1 July 2013 (50% say they are not ready and 35% are unsure).
Only 15% of advisers voting in our poll say they believe they will be FoFA ready by 1 July next year.
The sense we are receiving from advisers is of a general acceptance of the majority of the FoFA reforms. The problem appears to be a lack of information accompanying their intended implementation. Reflecting the broader mood of the meeting, one adviser has commented:
Until we know what exactly is required … there is no point incurring the costs of changing systems
“Until we know what exactly is required particularly with regards to existing clients (no problems with a new system for new clients) there is no point incurring the costs of changing systems etc, so my vote is “not sure” until we are sure of what is required to be FOFA ready.”
We ran this same poll question in late 2011, when the intended implementation date for the FoFA reforms was 1 July 2012. But even though the industry has effectively been given an additional 12 months to be FoFA ready, there has only been a very small increase in the number of advisers who say they will be ready.
This outcome seems to reaffirm the prevailing uncertainty for many adviser about what is required of them in order to become FoFA ready.
Part of this uncertainty revolves around whether advisers will operate under a complying code of conduct, thereby eliminating the requirement to observe the intended client opt-in regulations. Many advisers do not yet know whether they will be operating under an appropriate code of conduct and/or what those codes will require of them.
There may also be additional changes to the FoFA Bills when they are debated in the Senate during the winter session of Federal Parliament.
Does this outcome reflect your own position? Do you have concerns about your practices’ ‘FoFA readiness’? Or are you comfortable with how you are presently positioned? Let us know what you think. Our poll will stay open for one more week…
