{"id":28098,"date":"2014-11-19T19:40:27","date_gmt":"2014-11-19T08:40:27","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=28098"},"modified":"2014-11-19T19:55:24","modified_gmt":"2014-11-19T08:55:24","slug":"senate-takes-axe-to-fofa-amendments","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2014\/11\/19\/senate-takes-axe-to-fofa-amendments\/","title":{"rendered":"Senate Takes Axe to FoFA Amendments"},"content":{"rendered":"<p><span style=\"font-size: 14px;line-height: 1.5em\">The Government\u2019s Future of Financial Advice amendment regulations, which remove opt-in and the catch-all clause from the best interests duty, have been disallowed by the Senate.<\/span><\/p>\n<p><!--more--><\/p>\n<figure id=\"attachment_28104\" aria-describedby=\"caption-attachment-28104\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2014\/11\/Jacqui-Lambie.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-28104\" alt=\"Senator Jacqui Lambie\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2014\/11\/Jacqui-Lambie.png\" width=\"150\" height=\"180\" \/><\/a><figcaption id=\"caption-attachment-28104\" class=\"wp-caption-text\">Senator Jacqui Lambie<\/figcaption><\/figure>\n<p>In a surprise development overnight, Palmer United Party (PUP) Senator, <strong>Jacqui Lambie<\/strong>, and Australian Motoring Enthusiasts Senator, <strong>Ricky Muir<\/strong>, added their support to an Opposition-led motion to disallow the FoFA regulations.<\/p>\n<p>The disallowance motion was put to a vote in the Senate today, and was passed 32 to 30. The FoFA regulations have now been disallowed, meaning the Government\u2019s amendments to the FoFA legislation have been removed.<\/p>\n<p>The elements of the legislation that are impacted include:<\/p>\n<ul>\n<li>Grandfathering \u2013 the regulations addressed concerns that financial advisers could not switch licensees without losing grandfathered commissions<\/li>\n<li>Opt-in \u2013 the requirement to have clients resign with their adviser every two years has been reinstated<\/li>\n<li>Retrospective Fee Disclosure Statements (FDS) \u2013 the requirement to issue an FDS to existing clients has been reinstated<\/li>\n<li>Best interests duty \u2013 the final, catch-all step in the best interests duty \u2018safe harbour\u2019 steps remains in place<\/li>\n<\/ul>\n<p>This was the third time a motion to disallow the FoFA regulations had been put to the Senate. Previously, Senator <strong>Mathias Cormann<\/strong> reached an agreement with <strong>Clive Palmer<\/strong>, securing his party\u2019s Senate votes, along with that of Senator Muir, to retain the regulations (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2014\/07\/15\/palmer-deal-secures-fofa-amendments\/\">Palmer Deal&#8230;<\/a>). However, Senators Lambie and Muir changed their position on FoFA and added their names to the latest FoFA regulations disallowance motion.<\/p>\n<p>The disallowance motion was lodged on 18 November, and scheduled for debate on 27 November 2014. However, the Labor party then called on the Senate to suspend Standing Orders to bring forward the debate on the motion to 19 November.<\/p>\n<p>The Government\u2019s FoFA amendment legislation is still awaiting debate in the Senate, but if voting follows current patterns, it is unlikely to be passed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government\u2019s Future of Financial Advice amendment regulations, which remove opt-in and the catch-all clause from the best interests duty, have been disallowed by the Senate.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[259,8],"tags":[],"class_list":["post-28098","post","type-post","status-publish","format-standard","category-breaking","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=28098"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28098\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=28098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=28098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=28098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}