Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011

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Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011

29 February 2012

© Commonwealth of Australia 2012
ISBN 978-1-74229-589-3

View the report as a single document - (PDF 2605KB)

View the report as separate downloadable parts:

Members of the Committee (PDF 320KB)
 
Duties of the Committee (PDF 327KB)
 
Abbreviations (PDF 290KB)
 
Recommendations (PDF 306KB)
 
Chapter 1 - Introduction and background to the inquiry (PDF 426KB)

Conduct of the inquiry
Background to the inquiry
Previous committee inquiry into financial products and services in Australia
Structure of the report
Chapter 2 - Provisions of the Bills (PDF 360KB)

Corporations Amendment (Future of Financial Advice) Bill 2011
Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011
Chapter 3 - Annual fee disclosure and the opt-in obligations (PDF 412KB)

Submitter's views
Committee view
Chapter 4 - Views on the introduction of a statutory 'best interests' duty for financial advisers (PDF 438KB)

Support for a statutory 'best interests' duty for financial advisers
Formulation of the 'best interests' provisions
Views of submitters on the 'best interests' provisions in section 961B
Ability for advisers to provide scaled advice under the new duty
Scope of the best interests duty and proposed carve-outs

Chapter 5 - Bans on conflicted remuneration (PDF 875KB)

Submitters' views
General advice
Volume-based rebates
Risk insurance inside superannuation
Asset-based fees on borrowed amounts
Grandfathering provisions
Technical amendments and 'drafting anomalies'
Chapter 6 - Volume based fees and anti-avoidance provisions and soft-dollar exceptions (PDF 390KB)

Volume-based shelf-space fees
Anti-avoidance provisions
Soft-dollar benefits
Scrutiny of Bills
Chapter 7 - The matter of carve-outs: basic banking, stockbroking and the timeshare industry (PDF 400KB)

Carve-out for basic banking products
Stockbroking carve-out
The timeshare industry
Chapter 8 - Discretionary powers of the Australian Securities and Investments Commission (PDF 341KB)

Submitters' views
Chapter 9 - The projected impact of the FOFA reforms on the financial advice industry (PDF 474KB)

The projected impact on industry
Chapter 10 - The consultation process and implementation timeframe (PDF 384KB)

The consultation process
The implementation timeframe
Concluding comments and a final recommendation
Dissenting Report by Coalition members of the Committee (PDF 596KB)

Impact of FOFA on the financial advice industry
FOFA Regulatory Impact Statements fail government's own process requirements
Unrealistic Implementation Timeframe
Opt-in will add unnecessary additional costs and red tape
Retrospective Fee Disclosure Statements – not part of the government's proposed changes until the last minute
Best Interests Duty
Providing Scaled Advice
The government’s confused and ever-changing position on Risk Insurance inside superannuation
Conflicted remuneration
Grandfathering Provisions
Anti-Avoidance Provision
New ASIC powers
Intra Fund Advice not defined by FOFA legislation
Appendix 1 (PDF 305KB)
Submissions
Answers to Questions on Notice
Additional information received
Appendix 2 - Public Hearings (PDF 304KB)

Monday 23 January 2012
Tuesday 24 January 2012
Appendix 3 - Conflicted remuneration: technical amendments requested (PDF 374KB)

For further information, contact:

Committee Secretary
Parliamentary Joint Committee on Corporations and Financial Services
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone: +61 2 6277 3583
Fax: +61 2 6277 5719
Email: corporations.joint@aph.gov.au