In Australia, FoFA stands for Future of Financial Advice reforms.
In 2010, the Government decided that they would turn their minds to putting in place new laws that would help the general public to feel confident about obtaining financial advice.
Their impression was the general public had a lack of trust and confidence in the financial planning advice they were receiving from Financial Planners and Advisers.
They felt that the general public should have the benefit of new laws to specifically regulate the financial planning industry and that this would in turn build consumer/client confidence.
They saw this as a particularly important strategy in order to better deal with some key issues such as the massive amount of money flowing into compulsory superannuation, a steadily ageing population, longer life expectancy and the pressures this would put on our already stretched public welfare/pension system.
Their goal was to put in place measures to protect the general public and to support them to make appropriate decisions about their money and assets throughout their working life so as to sustain their lifestyles into their retirement years and beyond.
The first of these new laws came into effect on 1 July 2012 and included a transition period of 12months for the industry to respond and make the necessary adjustments for these laws becoming compulsory on 1 July 2013.
Below is a table developed by the Financial Planning Association of Australia that summarises those changes.