Key Documents
The Corporations Amendment (Future of Financial Advice) Act 2012 and the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 inserts Part 7.7A into the Corporations Act 2001 containing the Future of Financial Advice (FOFA) reforms.
The Corporations Amendment Regulation 2013 (No. N ) (the Regulation) contains limited exemptions for stockbroking-related activities from the application of the FOFA reforms. Specifically, the Regulation extends the scope of existing stockbroking-related exemptions to provide that:
- brokerage fees are exempt from the ban on asset-based fees on borrowed amounts; and
- fees can be paid by licensees that execute trades on behalf of the retail clients of other licensees, where those trades are requested by the client through the non‑executing licensee's online trading service, under circumstances where clients do not receive personal advice.
The exemptions identified in the Regulation will be subject to a two year review to ensure that they are working as intended. The review will be undertaken by the Australian Securities and Investments Commission and will also encompass the existing FOFA exemptions relating to stockbroking activities. Regulatory amendments are not required to perform this review.