Date posted: 11/12/2020

End of FASEA makes ASIC’s role in the future of financial advice vital

The Government’s 9 December 2020 announcement that FASEA will be wound up means ASIC will be equipped with steering a path to the future of the Australian financial advice industry; have your say on this future by responding to the ASIC CP 332 survey on impediments to affordable high-quality financial advice.

In brief

  • The Australian Government has announced it will wind up FASEA and expand the operation of ASIC
  • This means it has never been more important for members to highlight their pain points to ASIC through responding to the CP 332 survey by 18 January 2021
  • We encourage members to complete ASIC’s CP 332 survey whether you are practicing in advice or are not licensed

After three years of advocacy to reduce the regulatory burden on financial advisers, CA ANZ supports the Australian Government’s decision to consolidate FASEA and ASIC functions. 

This is in line with our request to Senator Jane Hume in October to recognise the need to reduce the financial advice industry’s multiple licences, registrations, regulators and levies so financial advice can be more affordable. 

“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” 
said Financial Advice Leader Bronny Speed FCA.

We hope this reform is the start of a reduction in regulation and a move to a strategic reform model, enabling more individuals and small businesses to be helped on the road to recovery from the COVID-19 pandemic.

The Government’s announcement on 9 December 2020 seeks to strengthen oversight of financial advisers while at the same time simplifying the regulatory framework governing the provision of financial advice.  These reforms will result in FASEA being wound up and expanding the operation of the Financial Services and Credit Panel (FSCP) within ASIC.

This expanded role means it has never been more important for members to highlight their pain points to ASIC as it begins to shape the future for financial advisers.  

You have until 18 January 2021 to respond to ASIC’s recently released Consultation Paper 332: 'Promoting access to affordable advice for consumers'.  Unlike most consultations, ASIC is seeking feedback directly from our members, and we urge you to share your views directly with ASIC. 

To assist you to navigate ASIC’s survey we have prepared a handy guide.

By advocating for the removal of multiple licences, registrations, regulators and associated levies, the cost of obtaining strategic financial advice will decrease for both advisers and their clients. 

We are also strongly advocating for a strategic advice model that would mean many members would be able to give single issue advice around basic superannuation concepts without an AFSL. In addition, for those members who provide strategic and product advice under a full AFSL, they should be able to do so in a far more cost-effective environment. 

In our view, this reform is critical so more members can help their clients on the road to recovery from the COVID-19 pandemic.

The Government has undertaken to implement this first step through legislation to be introduced into Parliament in the first half of 2021.  We look forward to continuing to work closely with all current and future regulators to represent the views of our members, and their clients, on the reform of the industry.

ASIC Survey on CP 332

In this survey, please feel free to only answer the questions which are most relevant to you and your experience. 

Take Survey

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