Financial advising is a very important and integral part of the financial market. The financial advisers or agents working under various firms are trained individuals, who are always prepared to attend to any of your inquiries regarding the financial markets. The professionals are well equipped protect the interests of their clients. The professionals are entrusted with different types of duties. They promote the various schemes in the financial market among the target clients. The clients turn to the financial agents, when they want to take any action regarding the financial market. They provide consultancy to the clients regarding any situation in the financial markets. The financial firms depend on the financial agents heavily for their developments.
In the later part of 2000s, numerous financial firms suffered huge setbacks. For this reason, regulatory framework has been proposed, which is called the FOFA or future of financial advice. This has been proposed to enhance the excellence of the financial advice and consequences for the consumer related to the financial fields. It facilitates the consumers with simple guidance related to financial advice, which can be acquired at more affordable price. The regulatory framework of the financial market aids the public to use the tools of financial market in more hassle free manners.
The regulatory framework has laid down few guidelines, which include the removal of the exemption provided to the accountant. The accountants provide advices to the clients on SMSFs under exemption, included in Corporations Regulations 2001. The accountants will be able to hold an Australian license related to financial services, through FOFA. The accountants can also act as an authorized representative of the license.
According to the FOFA, numerous financial firms will require to reorganize their managerial systems, so that they can cope up with the various obligations. The firms will also require bringing upon themselves transition costs consequently. FOFA reforms will facilitate the financial market with new opportunities. The consumers will be able to reap rich rewards due to the reform measures of the FOFA. Important people will show more interest in the financial industry, as a result of this. The demand for financial advice will get enhanced to this.
There are numerous benefits of the FOFA. The benefits include the following:
- The regulatory framework covers both the life and general insurance
- Formation of products related to life risk
- Superannuation securities and products
- Various banking products or basic products
- Support of software or information technology provided to the customers, which is related to the advice regarding financial products
- The people benefited with authentic financial advice education
- The recommendations of the financial products will not be prejudiced by commissions
- Investment schemes, which can be easily managed
- The clients will not suffer detriment, as a result of fee arrangements in excess
- More client focused financial advice
- Increased availability of financial advice in the financial market
- More competitive financial market
- Important savings on the part of the customers, due to the reduced product fees
- Financial planners to be discouraged, when it will come to the recommendations of imprudent financial investment strategies
Consumer satisfaction is the primary concern on the list of FOFA. The government is pinning their hopes on the regulatory framework, as far as the boosting of the financial market, is concerned. If all the guidelines, laid down in FOFA, are followed religiously, then the future of the financial market looks extremely promising.