The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, today announced the commencement of consultation on the Future of Financial Advice reforms announced on 26 April 2010.
"I welcome the positive and mature industry response to these reforms, and broad support from the financial planning industry for improving the quality of financial advice.
This will go a long way towards building the trust and confidence of consumers in the industry," Mr Bowen said.
"Now that the key principles have been established, the next step is for Treasury to consult with stakeholders on the details for implementing the reforms, in particular the accountant's exemption and adviser charging.
"There will also be consultation about whether to extend the ban on conflicted remuneration structures to risk insurance."
In the coming weeks, Treasury will hold information sessions on the reform package in Sydney and Melbourne, to be followed by further targeted consultation on key details.
The new Future of Financial Advice website (http://futureofadvice.treasury.gov.au) will provide information on the implementation process, answers to frequently asked questions, and enable the public to provide feedback about the reforms.
The Future of Financial Advice reform package includes such measures as a ban on conflicted remuneration structures, including commissions and any form of volume based payment to financial advisers; the introduction of a statutory fiduciary duty requiring advisers to act in the best interests of their clients; and the introduction of a new adviser charging regime.
These significant reforms will apply from 1 July 2012.
Interested stakeholders who wish to contribute views and information can email futureofadvice@treasury.gov.au.
17 May 2010