Date posted: 10/12/2020

Saying CYA to FASEA gives rise to new importance for ASIC

The Government’s announcement on the winding up of the Financial Adviser Standards and Ethics Authority (FASEA) means that ASIC will be equipped with steering a path to the future of the financial advice industry.

"After three years of advocacy to reduce the regulatory burden financial advisers face, we support the Government's decision to consolidate FASEA and ASIC functions.," said Financial Advice Leader Bronny Speed FCA.

"This is in line with our request to Senator Jane Hume in October that there is a need for a reduction in multiple licences, registrations, regulators and levies for financial advice to be more affordable to everyday Australians

"This reform is hopefully the start to a reduction in regulation, so that more individuals and small businesses can be helped on the road to recovery from the COVID-19 pandemic.

"This means it has never been more important for our members to highlight their pain points to ASIC as it starts to shape the future for financial advisers."

ASIC recently released Consultation Paper 332: 'Promoting access to affordable advice for consumers' to further understand the current issues and impediments around delivering affordable, quality personal financial advice, particularly in relation to limited advice.

"ASIC’s consultation signals a critical milestone as unlike most consultations, ASIC is seeking input directly from members," said Speed.

"Following our numerous government submissions, meetings with Ministers and advocacy to regulators, this is an opportunity for members to drive further change so that more Australians can afford personal financial advice.

"We will continue our hard work to make sure the voice of our members who are helping Australians right across the country is being heard."