Date posted: 12/08/2021

Submission on Financial Sector Reform Hayne Royal Commission Response Better Advice Bill 2021

Revised bill to establish a new single disciplinary body for advisers, the transfer of FASEA responsibilities to ASIC and Treasury, and the removal of TFAs from the TPB and transfer to ASIC.

In brief

  • ASIC would oversee a new single disciplinary body established for financial advisers
  • FASEA would be wound up and its functions transferred to either ASIC or Treasury
  • The regulation of tax (financial) advisers would be moved from the TPB to ASIC

CA ANZ has long advocated for industry reform to ensure more consumers are able to access high quality, ethical and professional financial advice and we welcome this revised bill as it simplifies some overlapping regulatory areas and promotes professionalism. 

CA ANZ supports raising the standards of financial advice to better serve and protect consumers and  recently made a submission to the Senate Standing Committees on Economics on the revised bill in these three areas:

1. Single disciplinary body (SDB) for financial advisers and for registration

The bill proposes that ASIC convene a financial services and credit panel if it reasonably believes that a financial adviser has breached their Corporations Act obligations. The new law also proposes a two-stage registration method with the first stage requiring licensees to register their advisers and the second stage to allow individual self-registration. 

CA ANZ has significant experience in running conduct and disciplinary processes through its Professional Conduct Committee (PCC), Disciplinary and Appeals Tribunals (Tribunals) and would be keen to work with ASIC in the development of the SDB. We believe our experience, expertise and existing resources may be of benefit to ASIC and CA ANZ is happy to share insights with officials.

‘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’. 
Bronny Speed, CA ANZ Financial Advice Leader 

2. Wind up of FASEA and transfer to the Minister 

Under the proposed bill, the Minister would be responsible for all of the standards-setting functions and ASIC would administer an exam for financial advisers in accordance with the principles approved by the Minister.

CA ANZ is willing to help improve the FASEA standards and has already made many suggestions to FASEA, and we would appreciate the opportunity to resume those conversations once the Minister assumes responsibility in this area.

3. Regulation of tax (financial) advisers 

Under the bill, to provide tax (financial) advice services a person must either be a registered tax agent or a financial adviser who has met the education and training standards to provide tax (financial) advice services under the Corporations Act.

CA ANZ believes this is a golden opportunity to really start removing duplicated regulation, so we urge the Federal Government to go one step further and completely sever the ties of tax (financial) advisers (TFAs) from the TPB and look at other areas to remove duplicated regulation.

We continue to call for a reduction in unnecessary overlapping regulation to the limited licensing space and will continue to strenuously advocate for this to occur.

Read about our licensing advocacy

The CA ANZ financial advice advocacy team in Australia is currently working on a review of limited licensing to develop an effective and permanent model for the provision of limited financial advice by accountants.

Read more

See media coverage

accountantsdaily:Financial advice reform an opportunity to reduce red tape: CA ANZ

Read more

Financial Advice Industry News 

Login and subscribe to get your monthly update.

Subscribe now