TressCox offers FOFA compliance tips

Several aspects of advice and payment structures may need to be reviewed prior to FOFA, according to Levina Chim, associate at TressCox Laywers.

Chim said legislative changes typically result in changes to compliance manuals, making it important to train advisers in relation to these changes.

“In particular, note what products are exempted from the conflicted remuneration regime and what would consist of a conflict of interest,” she said.

Chim also said it’s important to train advisers about best interest obligation, where if advisers don’t have the expertise to provide advice on certain products and services, they need to warn their clients.

Statements of advice may need to be reviewed according to Chim, to ensure advisers demonstrate they’ve completed “reasonable investigation” for their clients.