ASIC gears up for new responsibilities

In a brief statement issued on Tuesday (2 November), the corporate regulator relayed its new responsibilities following the passage of the Better Advice Bill.

Commencing on 1 January 2022, the Australian Securities and Investments Commission (ASIC) is poised to become an integral player for advisers following the wind-up of the Financial Adviser Standards and Ethics Authority (FASEA) and the corporate regulator’s assumption of exam oversight powers.

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Moreover, 1 January is set to bring other key changes, including the unveiling of the new Financial Services and Credit Panel (FSCP) with its own functions and powers, including powers to address less serious misconduct.

Each panel of the FSCP will be comprised of an ASIC staff member, who will chair the panel, and no less than two industry participants. 

A single registration and disciplinary system will also kick off, with all financial advisers required to be registered from 1 January of the following year.

Registrations are set to occur in two stages, with stage one said to provide a one-off registration process administered by ASIC using the existing Financial Adviser Register.

Stage two, however, will commence once the Financial Advisers Register transitions to the Australian Tax Office as part of the Australian Business Registry System (ABRS).

ASIC is set to provide guidance on registration later in the year.

While the financial advice sector generally welcomed the implementation of the Better Advice Bill last month, some groups voiced their concerns around ASIC’s new powers. 

The Association of Financial Advisers’ (AFA) general manager, policy and professionalism, Phil Anderson, said at the time he was particularly concerned about ASIC’s power to investigate minor breaches without having to refer them to the panel.

“This will add unnecessarily to the cost of running the single disciplinary body, which ultimately financial advisers and their clients will need to pay for,” Mr Anderson opined.

Additionally, executive director of the Association of Independently Owned Financial Professionals (AIOFP), Peter Johnston, said that ASIC must also “immediately” address the FASEA education pathway, which is “unclear, confusing and to some institutions, discriminatory”.

“We can’t have advisers spending money and time on courses that don’t qualify, we need clarity as a matter of urgency,” Mr Johnston said.