ASIC will be flexible with FOFA enforcement
The Australian Securities and Investments Commission is working within what it calls its "facilitation period" for the introduction of Future of Financial Advice laws and is taking a flexible approach to enforcement, while the government sorts out its amendments.FOFA, which tightened the remuneration rules for financial advisers and reformed other aspects of financial planning industry practice, took effect in July last year.The government has tabled legislation to amend the FOFA rules but created uncertainty on Monday when the Finance Minister Mathias Cormann said he had decided to "pause the process on FOFA regulation".Cormann said the government was committed to implementing "improvements" to FOFA and would undertake consultation before "pressing the go button on our changes".ASIC deputy commissioner Peter Kell said the regulator was helping firms get their FOFA compliance in place and had not placed much emphasis on enforcement at this stage."That gives us some flexibility to consider the government's announcement," Kell said."We are in discussions with the government and we will inform the market if we have to moderate our approach. But at the moment it is steady as she goes."