{"id":10053,"date":"2014-06-22T17:25:49","date_gmt":"2014-06-22T21:25:49","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=10053"},"modified":"2014-06-22T17:25:49","modified_gmt":"2014-06-22T21:25:49","slug":"highly-unlikely-to-ever-see-a-storm-again","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2014\/06\/22\/highly-unlikely-to-ever-see-a-storm-again\/","title":{"rendered":"“Highly unlikely to ever see a Storm again”"},"content":{"rendered":"

Andrew Starke welcomes the latest proposed changes to Future of Financial Advice (FoFA) legislation in FINSIA News:<\/p>\n

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Changes… outlined by the government on Friday have generally been well received, with many in the industry now hoping for final clarity on a process that has been running since the Labor Government revealed the proposed reform package in April 2011…..First and foremost, the changes outlined by the government on Friday ensure a clear ban on commissions after it had previously left the door open via the so-called \u2018Wolf of Wall Street\u2019 clause within general advice. Any possibility of a return to commissions on investments or superannuation products has now been ended.\u201cThis response removes all doubt that commissions will be introduced in the provision of general advice. The government will define and ban commissions in black letter law” said John Brogden, CEO of the Financial Services Council FSC. \u201cThe changes outlined by the government also maintain a detailed and comprehensive best interest duty requiring a financial adviser to act in the best interests of their client.\u201d<\/p>\n

Best interest clarified<\/strong>
\nWhile the perceived watering down of the best interest duty has attracted a great deal of attention in the mainstream press, Brogden said this should be put in perspective. Prior to FoFA, financial advisers simply had to offer ‘appropriate advice’ while they now need to comply with a raft of regulation. \u201cThere are six separate duties in the Corporations Act that require a financial adviser to act in the best interests of their client. In addition, there are six specific steps that must be met by an adviser when providing advice that codifies the best interest duty,\u201d Brogden said. \u201cThe government has made one minor change to the best interest duty by removing an unnecessary \u2018catch all\u2019 provision. This change will actually clarify the best interest duty and remove any ambiguity for a financial adviser to always act in a client’s best interests.\u201d The FSC has legal advice from leading commercial counsels Ian Jackman SC and Gregory Drew which it said confirms that the removal of ambiguous ‘catch-all’ phrase will not dilute the obligation of an adviser to act in the best interest of their client……The Australian Bankers\u2019 Association ABA also welcomed the announcement and said the amendments would preserve the original intent of the law while correcting the current overreach and broader uncertainties.<\/p>\n<\/blockquote>\n

What puzzles me is:<\/p>\n