THE Senate has voted in support of the government’s amendments to financial advice laws, for the benefit of consumers and small business financial advisors.
The changes made to the Streamlining of Future of Financial Advice (FOFA) Bill will take full effect in coming months, providing significant changes to the current state of financial service.
According to a statement by the Minister for Finance Mathias Cormann investors will no longer need to keep re-signing contracts with their advisors on a regular basis - with annual fee disclosure requirements expected to be simplified as well.
The changes also promise to improve the operation of Best Interest Duty and the provision and availability of scaled advice.
Protected by these modifications is the requirement for financial advisors to act in the best interest of their clients, in addition to the ban on conflicted remuneration.
Clive Palmer, the Australian Motoring Enthusiasts Party and senators David Levonhjelm and Bob Day have shown their support for the alterations made.The government expects progress to continue on further amendments and discussions surrounding the FOFA bill.
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