FOFA grandfathering deal struck

A statement issued just now from finance minister Mathias Cormann reveals that the two major parties have agreed to progress a slightly amended FOFA through the parliament before year’s end, delivering crucial relief on the issue of grandfathering.

The statement explains that regulations that were disallowed will now be re-made to include:

• “amendments to the grandfathering provisions that will address unintended consequences, and facilitate competition in the financial advice industry, by enabling advisers to move licensees with their clients whilst continuing to receive grandfathered remuneration;
• amendments to the training and education provisions that specify that benefits in relation to education and training that relate to conducting a financial services business are not conflicted remuneration;
• amendments to the stamping fee provisions that clarify its application to capital raising activities and broaden its application to include investment entities;
• amendments to the accountants’ certificate renewal period to provide that the extended two year renewal period also applies in relation to FOFA; and
• amendments to the brokerage-related provisions of FOFA to extend the provisions to products traded on the ASX24.”

All other elements of the government’s amendment agenda will remain disallowed and the original FOFA legislation will stand.