Exposure draft Bills for FOFA Tranches 1 and 2 were released in late August and September respectively but only part of Tranche 1 has found its way into a Bill which has been introduced into Parliament. That occurred on 13/10/11. Even though the Bill has a heading “Best interest obligations and remuneration” it does not, at the time of posting this blog, address either. Rather it focuses on the new obligations in relation to ongoing fee arrangements (usually linked to the ‘opt-in requirements) and enhancements to ASIC’s licensing and banning powers.
The other FOFA reforms will be in the legislative pipeline soon but with this first Bill being referred to a Parliamentary Joint Committee and Economics Committee with reports expected from those Committees in February and March next year, it is hard to see the 1 July 2012 timeline for commencement of the reforms being met.
A one page summary of the Bill currently in Parliament is attached.
Further FOFA by Holley Nethercote Commercial Lawyers is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 Australia Licence.
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