The IPA, in conjunction with Maddocks Lawyers, is launching new resources for members who have decided to enter into referral arrangements with financial planners under FoFA.
If you have decided to not become licenced or authorised, it is still important for you, when referring clients, to comply with the requirements under the Corporations Act and other legislation. The below list of resources will assist you in that process.
- Financial services referral checklist
- Guidelines for referrals for financial services
- Referral form - can be a white paper if you wish to include your logo in the top left hand corner
- Referral form, Shadforth Financial Group - can be a white paper if you wish to include your logo in the top left hand corner
The Future of Financial Advice (FoFA) reforms were introduced to improve the quality of financial advice and consumer protection as a result of the failures of financial advice firms in the late 2000s. Enabling easier provision of simple advice is expected to make financial advice more accessible and affordable, as well as more competent advice.
FoFA will see the removal of the accountants' exemption. Currently, accountants are able to provide advice on SMSFs under the exemption provided by Regulation 7.1.29A of the Corporations Regulations 2001. With the FoFA reforms, this exemption will be removed, meaning that accountants will be unable to provide SMSF advice without either holding an Australian Financial Services License (AFSL) in their own right or being an authorised representative of a licensee.
As a result of the advocacy efforts of the Joint Accounting Bodies (IPA, CPA Australia and CAANZ), the Government announced a new limited license. Accountants and other advisers who obtain the limited AFSL will be authorised to provide financial advice on self-managed superannuation funds (SMSF) and class of product advice about:
- superannuation products;
- simple managed investment schemes as defined in the Corporations Regulations 2001;
- general and life insurance; and
- basic deposit products.
Class of product advice is financial advice that does not make a recommendation (in form or in substance) about a specific financial product.
The main alternative is to become an authorised representative of an AFSL Holder. Click here to find out which option best suits you.
Useful links & Updates
FoFA Decision Tool - Online tool developed by the IPA to assist you in your decision making process
ASIC Information Sheet 179 - Applying for a Limited AFS Licence
FoFA FAQs - Our Frequently Asked Questions document can assist you with common questions you may have about FoFA
FoFa Reforms Update (2015)- delivered by Vicki Stylianou, Executive General Manager, Advocacy and Technical
Financial Services Package - As a result of the FoFA reforms the IPA has developed a package to provide access to financial planning services that suit you.
futureofadvice.treasury.gov.au - Treasury's Future of Financial Advice Site.
APES 230 - We provide you with all the APES 230 updates.
To discuss your particular queries or circumstances, please call Vicki Stylianou, phone 0419 942 733 or email her at: firstname.lastname@example.org