Macquarie Adviser Services FOFA Update

Macquarie Adviser Services 2 Key FOFA Changes  Enhanced ASIC Powers  Best Interests Duty  Ban on Conflicted Remuneration  Annual Fee Disclosure  Opt-in Requirement

Macquarie Adviser Services 3 Impact of Legislation  Enhanced ASIC Powers — Not expected to require any changes to COIN  Best Interests Duty — Additional wording was added to clarify how the best interest duty is expected to facilitate the provision of scaled advice. — COIN's Quick Plan module, which allows the generation of short-form advice documents, is expected to be a key tool in the functionality for providing scaled advice.

Macquarie Adviser Services 4 Impact of Legislation  Ban on Conflicted Remuneration — Will require product providers to clearly distinguish between adviser and product fees. — Expected to result in a change to data feeds and their representation in COIN. — Changes to be dictated by fund managers – COIN to continue working with them.

Macquarie Adviser Services 5 Impact of Legislation  Annual Fee Disclosure — Provide information about the ongoing services the client was entitled to and the services actually received during the previous 12 months. — Amendment removed requirement to disclose fees and services for the following 12 months.

Macquarie Adviser Services 6 Impact of Legislation  Opt-in Requirement — Exemption available if ASIC is satisfied that an approved code of conduct is in place. — Professional bodies that have code of conduct will need to apply and gain ASIC approval. — If opt-in does apply, Renewal Notice needs to provided to client every 2 years.

Macquarie Adviser Services 7 What is COIN Doing?  Service Packages — Allow the creation of a number of different service level packages and also the recording of package details and the associated fees. — Services will be set up via the “Preferences” section in COIN.

Macquarie Adviser Services 8 What is COIN Doing?

Macquarie Adviser Services 9 What is COIN Doing?

Macquarie Adviser Services 10 What is COIN Doing?

Macquarie Adviser Services 11 What is COIN Doing?  Service Packages — Details of which service package selected by the client can be recorded in Fact Find. — Each entity can have separate service packages or a single package can apply to the whole entity group. — A record of which services were provided can be recorded to assist with the Fee Disclosure obligations.

Macquarie Adviser Services 12 What is COIN Doing?

Macquarie Adviser Services 13 What is COIN Doing?

Macquarie Adviser Services 14 What is COIN Doing?  Monitoring & Reporting — These changes will be accompanied by an increase to the reporting and monitoring capabilities in COIN. — New report options and new report filters: — Package types — Opt-in dates — Fee disclosure dates