The sale of financial services businesses will be exempt from conflicted remuneration provisions in the Future of Financial Advice legislation.

The exemption – included in a federal select legislative instrument on grandfathering – covers part or full sale by financial service licensees or authorised representatives to third parties.

“The regulation covers what are commonly referred to in the financial advice industry as ‘buyer-of-last-resort’ arrangements,” the instrument says.

“These arrangements allow the purchase or sale of all or part of a licensee’s or representative’s financial advice business using a specified formula.”

A price calculated using the value of financial products sold is allowed under the exemption.

“In these situations, buyer-of-last-resort arrangements alone would not influence the advice to recommend products issued by the licensee or a related party,” the instrument says.

For financial services licensees and authorised representatives paid under an enterprise arrangement in force before July 1 this year, the ban on benefits will apply six months after the agreement’s expiry date.