Second Tranche of FOFA Released - Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011

The Government has released the draft legislation and explanatory memorandum for the second and final tranche of its Future of Financial Advice (FOFA) reforms. Our earlier In Brief of 29 August 2011 discussed the first tranche of the FOFA reforms.

The Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011 (draft legislation) is expected to pass through the Senate in early 2012, and is scheduled to commence on 1 July 2012. The draft legislation covers the key components of the FOFA reforms:

• banning conflicted remuneration;
• banning of benefits from product providers;
• banning volume-based shelf-space fees;
• banning asset-based fees on geared funds; and
• anti-avoidance.