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ASIC releases guidance on code approval under FOFA

5/03/2013 12:13:42 AM

The Australian Securities and Investments Commission (ASIC) announced it will consider applications for approval of Future of Financial Advice codes following the release of guidance.

The guidance, in the form of an update to Regulatory Guide 183 Approval of financial services sector codes of conduct, details how ASIC will approve codes and use its relief powers, and follows consultation in 2012, including a consultation paper released in October 2012.

"Approved FOFA codes must meet substantially the same policy objective as opt-in: that is, they must promote client engagement and ensure clients do not pay ongoing financial advice fees where they are receiving little or no service," ASIC Commissioner, Peter Kell, said.