The federal government is set to begin consultation with Australia's financial services industry over proposed changes within its Future of Financial Advice (FFA) reform package.
Minister for Financial Services, Superannuation and Corporate Law Chris Bowen announced late yesterday that Treasury will hold information sessions on the reform packages in the next few weeks.
"Now that the key principles have been established, the next step is for Treasury to consult with stakeholders on the details for implementing the reforms, in particular the accountant's exemption and adviser charging," Bowen said.
"There will also be consultation about whether to extend the ban on conflicted remuneration structures to risk insurance."
To date, he said the response to the FFA reforms announced on 26 April has been positive.
"I welcome the positive and mature industry response to these reforms and broad support from the financial planning industry for improving the quality of financial advice," Bowen said.
"This will go a long way towards building the trust and confidence of consumers in the industry."
Treasury will hold information sessions on the reform package in Sydney and Melbourne, to be followed by further targeted consultation on key details.
The FFA reform package includes such measures as a ban on conflicted remuneration structures, including commissions and any form of volume-based payment to financial advisers, the introduction of a statutory fiduciary duty requiring advisers to act in the best interests of their clients, and the introduction of a new adviser charging regime.
The FFA reforms will apply from 1 July 2012.
