The Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 which implemented many key changes to the Future of Financial Advice (FOFA) legislation pending Parliament’s consideration of the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 was disallowed in full by the Senate on 19 November 2014. The Regulation had been in operation for nearly 5 months. Two previous attempts to disallow the Regulation (one to disallow it in full and the other to disallow it in part) had been unsuccessful.
Not surprisingly, ASIC has indicated (see 14-307MR – 19 November 2014, “Disallowance of FOFA regulations”, accessible at www.asic.gov.au) that it will take a practical and measured approach to administering the law as it now stands and will take into account that many Australian financial services licensees will need to make systems changes. Accordingly, ASIC will work with licensees, taking a facilitative approach until 1 July 2015.
