Rules that would require financial advisers in Australia to get clients to opt in to their services every two years - and send them a fee schedule every 12 months - are failing to win support among some key stakeholders.
Draft legislation for the Australian government's Future of Financial Advice (FoFA) reform - similar in scope to the UK's Retail Distribution Review (RDR) - was seen for the first time on Monday. Some of FoFA's proposals, including a ban on commissions, a new fiduciary duty for planners to act in the best interests of clients and new powers for the Australian regulator (ASIC) to ban planners who breach the new rules, have been widely welcomed. But the issue of forcing planners to ask clients to 'opt-in' to services every two years are proving a potential stumbling block for the reform...
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