"After moving to a new Licensee, the clients will be treated as 'new clients' with a financial disclosure statement required within one year and opt in will start in the second year."

Not necessarily. As long as the advice, the client and the product have not changed, there is a case to argue that grandfathering can be maintained. See new regulation 7.7A.16A(3).

You have to look at this from the perspective of the legislators and regulator. Ask yourself what they are trying to achieve. We in the industry are too focused on the business-to-business impacts, but it is clear from the various FoFA explanatory statements/memoranda that the legislators/regulator are far more focused on the client experience (i.e. the adviser-client relationship). So that is the most useful prism through which to assess these types of scenarios.

On grandfathering specifically, they key is best interest duty and how much enforcement action (if any) ASIC takes in that area. If ASIC remains passive, expect a whole lot of 'hold' recommendations in 2013/14.

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