July 1 is FoFA D-Day for advisers. Are you sorted?

The Future of Financial Advice (FoFA) deadlines are upon us and financial advisers should by now have taken several steps to ensure they meet their new obligations, according to the Fold Legal’s managing director, Claire Wivell Plater.

“By 30 June, advisers should have completed their first round of Fee Disclosure Statements,” Ms Wivell Plater said. “This is the only imminent deadline that will be affected by the proposed FoFA amendments.”

Ms Wivell Plater said if the amendments proceed, FDSs will only need to be provided to clients who were first advised after 1 July 2013. “But, by 30 June 2014, advisers would have already provided an FDS to their pre 1 July 2013 clients if they’ve complied with the current requirement. Go figure!”

Advisers must also ensure that they have non-conflicted fee arrangements in place for clients who first join a platform after 30 June 2014 and for all new investments by non-platform clients made after 30 June 2014.

“What this means is that, unless it’s grandfathered, after 30 June 2014 remuneration can’t be received from a product provider without the client’s clear consent and direction,” she said. “And all employee remuneration arrangements must be un-conflicted, regardless of when the employee began working for you.”