Tuesday, October 4, 2011

Alert – Government releases second tranche of draft FOFA legislation


On Wednesday 28 September, the federal government released the second tranche of draft legislation (including an Explanatory Memorandum) designed to give effect to its Future of Financial Advice (FOFA) reforms.  The draft Bill addresses conflicted remuneration (including product commissions, volume payments and 'soft dollar' payments).  Surprisingly, long-awaited provisions dealing with the 'grandfathering' of existing commission arrangements have been left out of the draft legislation.  For more information, take a look at our more detailed Alert.  Our earlier Alert on the FOFA reform agenda discusses the first tranche of the draft legislation.
The deadline for submissions to Treasury on the draft Bill is 19 October 2011.

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