FOFA - wholesale v retail Options Paper

Articles Written by Austin Bell (Partner), Shelley Hemmings (Partner), John Keeves (Partner)

In January 2011, Treasury released an Options Paper on the wholesale v retail client distinction, as part of the Future of Financial Advice (FOFA) project. The paper floats a number of options for a "new regime", including:

  • update and index the dollar product thresholds
  • repeal the sophisticated investor test
  • remove the wholesale/retail distinction completely
  • introduce a wholly subjective test
  • do nothing.

Submissions on the Options Paper were due on 25 February 2011. Legislation to implement FOFA is not expected to come into force until mid-2012, but exposure draft legislation might be seen as early as mid-2011.

Download the Options Paper here.

JWS made a submission in response to the Options paper. Read our submission here.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

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