The Self-Managed Super Fund Professionals’ Association (SPAA) is aiming to ensure its members will be exempt from opt-in requirements when Future of Financial Advice (FOFA) requirements take effect.
SPAA will work with the Australian Securities and Investments Commission (ASIC) to update its code of conduct to ensure the code is adequate to obviate opt-in requirements, as stipulated by the amended FOFA legislation.
Minister for Financial Services and Superannuation Bill Shorten last week announced that although opt-in requirements would remain part of the FOFA reforms, financial advisers could obviate the need for opt-in if they were part of a professional organisation governed by an acceptable code of conduct, as determined by ASIC.
SPAA chief executive Andrea Slattery said the FOFA reforms will result in the raising of standards across the financial planning profession, which is a positive step to boosting consumer confidence in advisers.
While supporting best interests requirements, SPAA maintained the view that a statutorily imposed opt-in regime is unnecessary.
The best interest duty, the banning of commissions, and the use of fee for service will assist in building trusted relationships with clients based on agreed terms with the client, according to SPAA.
