Regulatory Update: The Future of Financial Advice - Beyond Ripoll

The Federal Government yesterday announced its response to the Ripoll Inquiry into Financial Products and Services in Australia.

THE REFORMS
The response is in the form of an Information Pack on the Future of Financial Advice.
The proposals are far-reaching and contain the following three key reforms which are designed to apply from 1 July 2012:

• A prospective ban on conflicted remuneration structures, including commissions and any form of volume based payment;
• The introduction of an adviser charging regime which contains flexible options for consumers when paying for advice; and
• The introduction of a statutory fiduciary duty for financial advisers requiring them to act in the best interests of their clients.