Future of
financial advice

Amendments to the Corporations Act 2001

In July 2013 the Australian Government’s amendments to the Corporations Act 2001 came into effect, as part of the Future of Financial Advice (FoFA) reforms.

The reforms are designed to bring clarity to the provision of financial advice and fees charged, and to ensure that financial advisors act in their clients' best interests.

These important changes include:

  • banning financial advisers from accepting commissions if it is likely to influence the advice they give to a client
  • clients needing to opt-in for ongoing advice fees every two years
  • banning all commissions on insurance products inside superannuation (prospective ban); the ban does not currently extend to insurance products outside superannuation
  • banning volume-based payments
  • banning all upfront and trail commissions (and like payments)
  • banning all payments of commission of $300 or more (per benefit) to a third party in exchange for services that are not directed by the client but will benefit them (with an exclusion for professional development and IT administration services where set criteria are met); these are called soft-dollar payments
  • expanding a new form of limited advice called scaled advice, which can be provided by a range of advisers, including superannuation trustees, financial planners and potentially accountants, creating a level playing field for people who provide advice
  • introducing a statutory 'best interest duty' for financial advice with a 'reasonable steps' qualification.

If you have lost money or experienced financial hardship as a result of poor financial advice you may be able to make a claim for compensation.

Why Maurice Blackburn?

We can help you. Maurice Blackburn has the largest superannuation, insurance and financial advice disputes department in Australia.

We have experience dealing with financial services disputes for advice provided by the Commonwealth Bank, NAB and Macquarie Private Wealth.

We offer 'no win, no fee'* arrangements for these types of cases, which means that you don’t have to pay for our legal services if we don't win. We have specialist financial lawyers in Melbourne, Sydney, Brisbane, Perth, Adelaide and throughout Australia.

We have offices in Melbourne, Sydney, Brisbane, Perth, Adelaide, Darwin and throughout Australia. 

If you believe you are not being treated fairly by your financial adviser or another professional in this industry, contact us today to find out how we can help.

Kim Shaw

Executive Director, National Head of Personal Legal Services, Melbourne

'I am passionate about helping people know their rights and ensure they receive their lawful entitlements at a time of significant disruption and anxiety in their lives.'

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