The Corporations Amendment (Statements of Advice) Regulation 2014 was registered on Mon 8.9.2014.
It amends the Corporations Regulations 2001 to make a number of amendments to the financial disclosure requirements. The amendments alter some of the provisions regarding the Statement of Advice (SoA), a disclosure document which generally must be provided to retail clients receiving personal financial advice.
The Government announced on 15 July 2014 that it would implement additional improvements to the SoA requirements. These changes were negotiated with the Palmer United Party (PUP) and the Australian Motoring Enthusiasts Party in light of their support for the Government’s reforms to the Future of Financial Advice (FoFA) provisions. The changes include additional disclosure requirements in the SoA, requiring an adviser to disclose existing obligations in the Act. Further, the amendments also provide requirements for the adviser and the client to sign the SoA, as well as any instructions from clients for further or varied advice.
The Regulation commences on 1 January 2015. The amending Regulation provides no limitation on the period for which these changes will have effect. However, it is intended that the changes in this Regulation will be repealed once the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 passes the Parliament and receives Royal Assent.
[LTN 173, 8/9/14]