The Government has caved in after fierce industry lobbying and delayed the introduction of the Future of Financial Advice (FOFA) reforms for a year.

Financial Services Minister Bill Shorten has announced the application of the reforms will be voluntary until July 1 next year, but their introduction will still commence from July 1 this year.

Financial services companies will need to be compliant by the 2013 date.

The Government had previously denied it was going to change the implementation date of FOFA, but the financial services industry told Treasury the changes to administration systems couldn’t be undertaken in a few months.

“The Government has listened to concerns from the business and financial planning community that they need more time to prepare for these changes,” Mr Shorten said.

“This timetable also balances consumer needs, as it gives early industry movers the opportunity to provide commission-free products from July 1 this year.

“The revised implementation arrangements will lower industry implementation costs as they will be able to synchronise FOFA and Stronger Super reforms.”

He says the Government will continue to work with the industry to ensure the forms are implemented in the “most cost-effective way possible”.