How to use FOFA Compliance

About

The Future of Financial Advice reforms were introduced as Government Response to Parliamentary Joint Committee on Corporations and Financial Services' Inquiry into financial products and services. The reforms are focused on improving the quality of financial advice in Australia and enhancing retail investor protection.

In AdviserLogic FOFA Compliance is about the various fees paid by the client to the adviser for various investment and insurance products of the client/s.

Key Dates and Services

FDS Application Date: - The date on which the contract between the adviser and the client begins.  Sometimes referred to as the client start date, or anniversary date.

FDS Disclosure Date: - Once the application date is entered, click on save, and the Disclosure Date will automatically populate. This Date is 1 year after the FDS Application Date. However, the disclosure date can also be entered in manually if you are providing your disclosure statement on a different date (it should not be more than 12 months after Application date).

Opt-in renewal period: - Once the application date is entered and saved, the opt-in renewal start date will automatically fill in.  This will be one year from the FDS Disclosure Date.

Opt-in renewal period end date: - This date is 60 days later than the opt-in renewal start date. If the client does not renew the service within this period, the services and all ongoing fees must cease.

Opt-in Termination date: - If your client elects to discontinue your service agreement, you should record the date of termination in this field.

Service Level: - The legal agreement between the adviser and the client. The various service levels that have been chosen by the clients. Service levels can be added either from the FOFA Compliance screen or from Tools -> Practice Management -> Categories - > FOFA Service Levels. On selecting any service level, the selected one will be listed under heading Services. Adding Description for services is mandatory. Any Services listed which have been added from Tools can only be deleted from tools.

However, services can also be added from clicking on the ‘+’ sign.

Services that are added from here can be deleted by clicking on the cross button.

Tabs on the FOFA Compliance Section:-

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Disclosed:- By clicking on Disclosed we are saying that the Fee Disclosure Statement for the year has been provided to the client and the fees for the year has been disclosed. This will move the date in the field by 1 year and also create a File Note in the client's file notes section.

Renewed:- By clicking on Renewed we are saying that the agreement for the client has been renewed. The date will move forward by 2 years from the date currently entered in the Opt in Renewal field and a file note will also be created stating that the agreement with the client has been renewed.

Terminated:- By clicking on Terminated it means that the agreement with the client has come to an end. Once we click on Terminated all the dates will go blank and the Opt in Termination will have the date as the date on which the Terminated button was clicked. It will also create a file note stating this in the File Notes section.

FDS, Renewal Notice and Renewal F/Up:- This will generate the templated documents that have been set from the Tools>Administrative Tools>Practice Management>Quick Docs section.

Fees

Fees come from 2 sections:-

  • They can be added from the FOFA Compliance Screen itself.

Details about the fee can be filled. For example, short description as to what the fee is about and the account number, the entity that the fee pertains to and also other relevant details associated with fee can be filled in.

  • Fee details can also be imported via Tools -> FOFA/Revenue Management -> FOFA Fee Import:

Please insert details of importing revenue statements

  • Once your statements have been uploaded, you can map these entries to your client files via Tools -> FOFA/Revenue Management -> FoFA Orphan fee records.

Account Code of the records in FOFA Orphan fee records if was previously mapped to a client, will automatically show in the respective clients FOFA Compliance Section. However, if the account code has not been mapped previously it can be mapped from the FOFA Orphan fee records to the respective client the adviser wants to.  These can be completed in bulk per client.

You can also make changes in fee mapped.

Delete: - If the Adviser clicks on delete, the mapped fees will be deleted from the FOFA Compliance screen. However, the account code is still mapped to the same client, so if another fee with the same account code is entered from FOFA fee import, it will again get mapped to the same client.

Erase Account Number: - If Erase Account Number is clicked, the fees will be deleted from the FOFA Compliance screen and also the account number will also be deleted. So next time when a fee with the same account number is imported it will not be mapped to any client and will appear in the Orphan Fee Record screen.

Remap Account Number: - If fees have been wrongly mapped to a particular client, you can click on Remap Account Number and map the fees to the correct client.

 

 

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