In a statement, ASIC said it will grant a three-year exemption to all AFSLs from the obligation in the Corporations Act 2001 to ensure that their financial advisers are covered by a compliance scheme, and from the associated notification obligations.
Last week, the government announced it would accelerate the establishment of a single disciplinary body for financial advisers which would displace the role of compliance schemes in monitoring and enforcing the Financial Planners and Advisers Code of Ethics 2019.
ASIC said the move was made to provide certainty for AFS licensees that they will not be in breach of the law because their financial advisers were not able to register with an ASIC-approved compliance scheme by 1 January 2020 as was originally required.
However, it also added that AFSLs will still be required to take reasonable steps to ensure that their advisers comply with the code from 1 January 2020, and advisers will still be obliged to comply with the code from that date onwards.
ASIC said licensees do not need to take any action at this time but will make a public announcement when the legislative instrument providing the exemption takes effect.
Both the AFA and the FPA abandoned their attempts to become a code monitoring body for the industry following the government’s announcement of the single disciplinary body for financial advice.
Government/Labor happy to extend deadlines for them to get things done, but Labor not prepared to extend deadlines when it comes to advisers getting things done. They always benchmark against other professions, well I see no other profession that has to ensure their client understands the advise before taking it. Isn’t that why you go to the professional in the first place. Wish we could go back to a world where people took responsibility for their actions, rather than blame others for their apathy.
Like all reactive changes, the Government has taken it too far. It is now so much harder for financial advisers to give investment advice than it is for doctors to prescribe medication.
Hopefully I will be around in 3 years when they realise what a complete balls up they have created and they start to unwind some of the rules and regulations.
Talk about compliance on the run. this continued descent into high farce is embarrassing. all of these so called reforms designed to make things better (Cheaper) for clients isn’t working , maybe the government and regulator need to hasten slowly and get it right the first time?
One more reason for some people to leave in 3 years time. “I’m not paying yet another $1,000 to the Government for a code monitoring body with Bill Shorten and his Industry Super fund mates running it” Sayonara & Good Ridence Old Risky. I say take your legacy & contribution of over regulation, DFP, your back up the Hearse and flower story with you.