Australia's Financial Services Council (FSC), which represents financial corporations, is petitioning the new Australian government to delay implementation, saying that industry underestimated the enormity of FoFA and that there will be widespread non-compliance come Monday.
FSC chief executive John Brogden, speaking at an event, was quoted as saying that “there has been a level of indecent haste towards 1 June this year and there is concern about non-compliance in the industry.”
Brogden said the industry did not want to repeal FoFA, but would like to see a delay of implementation, a move that would be welcomed by advisors.
AFA’s Fox said advisors would likely need at delay until early 2014. “I would think that if it [a delay] was three months, we’d be having the same conversation. It would be improved, but would have the same elements,” Fix said. “I think six months would be the minimum to achieve what we would be seeking by getting a delay.”
FoFA includes provisions on best interests duty, a ban on conflicted remuneration, mandates stricter fee disclosure and requires that advisors have clients “opt-in” when products are renewed.