Grandfathering deal removes legislative handcuffs from advisers

Synchron Director, Don Trapnell is calling the deal struck by the Government and Opposition yesterday, which will deliver relief on the Grandfathering provisions of the Future of Financial Advice (FoFA) legislation before the end of the year, a victory for advisers.

“The unintended consequence of FoFA that prevented advisers from moving between Licensees because they would lose grandfathered commissions has been removed and common sense has prevailed,” Mr Trapnell said. “Likewise, the grandfathered commissions of a register bought by an adviser will also be protected.”

Earlier this week, Mr Trapnell said legislation around Grandfathering, reinstated by the disallowance of the Future of Financial Advice (FoFA) Amendments, effectively shackled advisers to their existing licensees. At the time, Mr Trapnell said the disallowance had the potential to embody in legislation, a Hotel California clause, whereby advisers could check out of a licensee arrangement anytime they liked, but would never leave without suffering a significant financial penalty.

“The deal struck by the Government and the Opposition around Grandfathering yesterday is a good outcome and one that Synchron has lobbied strongly for,” he said.