Date posted: 14/05/2021

A new disciplinary system is being proposed for financial advisers

Changes include a new Single Disciplinary Body to whom all advisers will be registered, the folding of FASEA into ASIC and Treasury and the removal of TFAs to ASIC.

In Brief

  • A new Single Disciplinary Body is to be established for financial advisers. ASIC will oversee it and all financial advisers will be required to be individually registered with it
  • FASEA will be wound up and their functions will be transferred to either ASIC or Treasury and
  • The regulation of Tax (financial) advisers will be moved from the TPB to ASIC

CA ANZ has been a regular contributor to government policy for financial advisers across many areas including Commissioner Hayne’s response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, FASEA reforms as well as proposals to change the services able to be provided by tax (financial) advisers.

CA ANZ has recently responded to the government’s draft Bill which includes proposals across these three different areas:

  1. The establishment of a single disciplinary body for financial advisers and the requirement that all financial advisers who provide personal financial advice to retail clients be registered. It is proposed that the role of the Financial Services and Credit Panel within ASIC will operate as the single disciplinary body for financial advisers.
  2. The functions currently being performed by FASEA will be transferred to the Minister responsible for administering the Corporations Act and to ASIC. The split of responsibilities will likely be that the Minister will make education and training standards and a Code of Ethics and that ASIC may approve foreign qualifications and administer the exam, both of which will also need to be approved by the Minister.
  3. Lastly, the draft Bill also implements the Government’s response to recommendation 7.1 of the Independent Review of the Tax Practitioners Board by introducing a single registration and disciplinary system for financial advisers who provide tax (financial) advice services.

CA ANZ is pleased to see a move towards individual professional responsibility and the de-coupling of unnecessary regulation that simply adds to the cost of providing financial advice.

We would, however, like to see the government extend its reduction in unnecessary overlapping regulation to the limited licensing space, and will continue to strenuously advocate for this to occur.

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