Ready or not. The financial services industry will have to be a lot more accountable under the Financial Services Legislation Amendment Act's new disclosure requirements, coming into effect mid-March.

The subject of fees, commission, and transparency have been hotly debated among financial advisers in the past, but the industry has tended to favour a more self-regulated approach. The new regime is imposing minimum income disclosure requirements, which may leave some customers wondering what they have been paying for?

"The light is being shone on the insurance industry and this will not only give customers confidence, but it will also make our industry stronger” That is the prediction of Emma Haugh, General Manager of the Frank Risk Management group. "There is going to be a 'day of reckoning' for some. Advisers who have not been transparent in the past will now be obliged to put their clients in the picture; and it could be awkward."

Haugh says, "the new disclosure obligations have been a long time coming, and many more progressive adviser firms adopted them a long time ago. Ultimately, the change is a good thing for clients and that’s the main thing.”