The Future of Financial Advice (FoFA) is a proposed regulatory framework in relation to financial advice. It brings into force major changes for the financial services industry.
FoFA is being brought in to improve the quality of financial advice particularly product recommendations and consumer outcomes as a result of the failures of financial advice firms in the late 2000s.
The core of FoFA is self-regulation through voluntary codes of conduct to be established by professional associations and approved by ASIC.
The Senate passed the FoFA bills on 20 June 2012. Three consultation papers have been released by ASIC:
- Consultation Paper 182 Future of financial advice: Best interests duty and related obligations – Update to RG 175
- Consultation Paper 183 Giving information, general advice and scaled advice
Comments for these closed on the 20 September 2012, and;
- CP 189 Future of Financial Advice: Conflicted remuneration
Comments for this paper closed on the 9 November 2012
For more information regarding FoFA, please refer to the following pages: