The delay in the commencement of TASA for financial is a sensible outcome, particularly given the industry’s huge commitment to becoming FoFA compliant, says AFA CEO Brad Fox
Fox says that without the passing of the legislation, the industry faced a fundamental legislative problem from 1 July. “Fortunately the passing of this legislation in the Senate has alleviated this complication,” he said. “With FoFA and MySuper starting… and TASA now on the horizon, the financial advice industry faces a very challenging time.”
Finalised grandfathering regulation was also released, allowing the industry another 12 months to prepare for the full implementation of conflicted remuneration obligations. Grandfathering for platforms was omitted from the original FoFA Bill. This omission was corrected via regulation in September 2012 and a draft regulation was released in March this year. However, Fox said the finalised regulation contained some additional elements that were not in the draft, including grandfathering for employee arrangements.
Fox welcomed the additional clarity on the Grandfathering of employee remuneration arrangements for both salaried licensees and salaried advisers within an Authorised Representative business.
“In the absence of this regulation, the implications of changing employee remuneration arrangements were most concerning. The cost impact of these changes is significant, so adequate time for implementation is particularly important.
“Advisers are doing everything they can to implement these changes and we really need to support them,” he said. “Gaining some clarity around these issues has been beneficial to the industry as a whole.”