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. ) (the draft Regulation) contains limited carve outs from the application of the FOFA reforms in specific circumstances. In particular, the draft Regulation provides that Part 7.7A does not have effect in relation to an Australian Financial Services Licensee or representative in respect of retail clients not in this jurisdiction.
In addition, consistent with existing Australian Securities and Investments Commission (ASIC) Class Order relief, the draft Regulation provide an exemption from the obligations in Division 2 of Part 7.7A of the Act (the best interests obligations) for financial advice providers in situations where the conditions in the following ASIC Class Orders are satisfied:
- ASIC Class Order 05/736 Low value non cash payment facilities;
- ASIC Class Order 05/1122 Relief for providers of generic calculators;
- ASIC Class Order 08/01 Group purchasing bodies; and
- ASIC Class Order 11/1227 Relief for providers of retirement estimates.