With just a week to go until the arrival of the Future of Financial Advice (FoFA) reforms, the regulator has one message for the financial advice industry: keep talking to us.
A spokesperson for the Australian Securities and Investments Commission (ASIC) was not prepared to answer specific questions on what it will be doing operationally to police the new legislation but stressed that it will adopt a “measured approach” to inadvertent breaches.
“ASIC recognises in a number of areas that FoFA will require businesses to undertake major work so that IT systems and compliance requirements are in place for the new regime,” he said.
“ASIC is liaising with industry associations and firms to ensure that we understand where the most significant implementation challenges arise. We will adapt our regulatory approach during the introduction of FoFA to take account of these issues.”
This is consistent with the regulator’s stance during the introduction of other major policy reforms, such as the national credit laws.
While ASIC will work with industry participants to assist them comply with the new laws, the burden of proof will be on licensees and advisers to show they are making every effort to comply.
“ASIC will adopt a measured approach where inadvertent breaches arise or systems changes are underway, provided industry participants are making reasonable efforts to comply,” said the spokesperson.
“However, where ASIC finds deliberate and systemic breaches we will take stronger regulatory action.
“We will continue our dialogue with industry about the reforms, to help ensure that the introduction of the new requirements takes place in a measured and sensible way.”
