The Treasurer, Josh Frydenberg, has published draft legislation that upends existing laws for ongoing adviser fees and also requires financial planners to warn clients if they don’t meet the test for independence.
Industry stakeholders claim that these new laws, effective from 1 July this year, mean that all financial advisers will need to examine whether their practices need administrative overhaul.
The independence test refers to a series of prohibitions listed in section 923A of the Corporations Act.
Daniel Brammall, President of the Profession of Independent Financial Advisers (PIFA), says “Basically these boil down to just a couple of elements – conflicts of interest and conflicts of duty,”.
Our Founder, Stephanie O’Connor is a Practicising Member PIFA Gold Standard of Independence.
The PIFA guides Australians on how to find financial advisors who practice without incentive and without conflicts. It also educates and promotes the gold standard of independence for financial advisers in Australia.