The Federal Government has successfully passed its Future of Financial Advice (FOFA) bills through Parliament; with Minister for Financial Services Bill Shorten saying the reforms will pave the way for better quality services in the industry and ensure future growth in the area.

 

“The FOFA reforms introduce a new duty for financial planners and advisers to put their customers interests first, ban the payment of sales commissions and make it easier for a wider range of advice to be provided to consumers,” Mr Shorten said.

 

“As a result of the measures passed by the Senate today, every Australian consumer can be more confident that their financial planner or adviser is putting customers’ interests first and that the advice they receive is not influenced by sales commissions.”

 

While the reforms will still commence from 1 July 2012 as originally announced, the application of the provisions will be voluntary until 1 July 2013. These changes balance consumer needs and industry requirements by giving the financial advising community more time to prepare for the reforms, while still giving early movers the opportunity to provide commission-free advice from 1 July 2012.