The Senate Standing Committees on Economics has made its report on the changes to the FoFA reforms, and it appears that the bill will return to the House of Reps with only very minor changes.
The Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 was referred to committee in order to “‘provide a forensic and detailed examination of the legislation and the effects this and previous reforms would and have had on the financial services and investment decisions”. The committee was concerned to “strike the right balance” between consumer protections and the regulator burden on industry. The report includes a report by the majority of the committee and two minority reports.
Best Interest Duty
The majority of the committee was of the opinion that, with small amendments to the bill, “there would be no dilution of the best interests duty, but a greater deal of certainty for both client and adviser”.