Last year, the Federal Government introduced reforms to the financial services industry called the ‘Future of Financial Advice’ (FoFA). These reforms aim to increase confidence and trust in the financial planning industry by enhancing the quality of advice delivered to clients, strengthening investor protection and increasing fee transparency. The majority of these reforms become effective on 1 July 2013.
This is a positive move for the industry and we support the reforms which are to ensure anyone providing financial advice always puts their clients’ interests first and are transparent about the fees and services associated with their advice.
A full list of the financial advice reforms can be found here.
As part of this process, we’ll now be providing clients with a document called a ‘Fee Disclosure Statement’ on an annual basis. This annual statement will list the services you received, the services you were entitled to as well as the associated ongoing fees you paid.
The new reforms very much align with the way we currently run our business. Aside from the annual Fee Disclosure Statements, our clients will not see any substantial changes in the way we conduct our business. Godfrey Pembroke led the industry in introducing a transparent fee-for-advice model in 2006. The reforms will now bring the rest of the industry in line with what we are already doing.
If you have any questions about Fee Disclosure Statements or any of the new FoFA reforms, please get in touch via the Contact Us page.