FOFA continues as the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011 is released for comment

The Treasury has released the second tranche of Future of Financial Advice (FOFA) reforms.

In April 2010, the Government announced planned reforms to the finance industry so as to enhance consumer protections and increase confidence in the finance industry.

The first draft legislation released was the Corporations Amendment (Future of Financial Advice) Bill 2011 which introduced a statutory best interests duty for financial advisers as well as increasing the powers available to ASIC.

The second tranche of legislation relates to conflicted remuneration, a ban on commissions and "soft dollar benefits" (extra bonuses given to financial advisers not in the form of cash), amongst a range of other bans and reforms.

Investordaily.com reports that the FPA and Industry Super Network (ISN) are supportive of the reforms with FPA chief executive, Mark Rantall stating that:

We released our remuneration policy on banning investment commissions to members in 2009 - well before the issue was raised in the FOFA reforms - and welcome this being enacted under legislation

Related Links

• Draft legislation

• Explanatory memorandum

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