The Financial Planning Association of Australia (FPA) has welcomed the news that ASIC will focus on improving the operation of the reportable situations regime — previously referred to as breach reporting — originally brought in on 1 October 2021.
Earlier this month, the corporate regulator acknowledged concerns with the regime — which requires Australian financial services (AFS) licensees and credit licensees to submit notifications about “reportable situations” to ASIC within 30 calendar days — with commissioner Sean Hughes conceding it has led to “a number of implementation challenges”.
ASIC also said it will engage with Treasury on how the regime meets policy objectives.
FPA CEO Sarah Abood said ASIC’s announcement that it will work with stakeholders on solution is an “important step forward” for the sector.
“Some of the reporting required is placing an unnecessary compliance burden on FPA members. The FPA and its members would welcome further practical guidance from ASIC to assist licensees in meeting their obligations,” Ms Abood said.
“We look forward to working with ASIC to help facilitate the successful implementation of this regime to ensure that it meets its objectives for ASIC, the industry, financial planners and consumers.”
Ms Abood’s comments come after the FPA welcomed news by financial services minister Stephen Jones that a consultation paper will be developed on education standards and the adviser exam.
On Wednesday (10 August), Mr Jones said that the government would look at options to “streamline the education requirements for financial advisers” and addressed the 30 September deadline for existing advisers to pass the exam and continue to provide financial advice, saying that following the deadline, he will ask Treasury to explore how the exam can be improved, such as reducing the number of questions.
Ms Abood — who previously stated that addressing the education standards should be the “first order of business” for Mr Jones — said the association is looking forward to participating in the consultation “to ensure the continuing professionalisation of financial advice”.
“Financial planners currently face considerable uncertainty regarding future professional standards, and many have paused or postponed studies until the outcome is known. Hence, we believe the resolution of this matter is of the highest priority,” Ms Abood said following Mr Jones’ announcement.
“We encourage the government to ensure the consultation process is targeted and efficient, and we are keen to see swift and decisive action by the Minister giving the profession certainty on these standards.”
In the general population there is a bizarre but strong hatred of financial advisers mostly from people who have never had experience with one. This has come from ASIC and MoneySmart, Industry Fund advice smashing in advertising, and the old stories of people who were actually ripped off but under old rules and regs and often banks and AMP, sometimes anecdotally and sometimes from media.
Those old stories never die, they just get retold and recirculated. “I heard about someone who……..”
Everything ASIC does results in unnecessary compliance. ASIC is a burden on the efficient and effective running of the financial system in Australia.
A large part of ASIC’s responsibility is protection of consumers. Some reduction in industry efficiency may be warranted if it delivers greater consumer protection. But ASIC’s rampant persecution of all financial advisers has gone so far it has not only decimated the industry, it has totally undermined consumer protection as well.
Thanks to ASIC consumers find it increasingly difficult to access affordable professional advice, and are being duped by the hordes of unlicensed scammers that have proliferated to exploit the advice gap.