In a statement, financial services minister Jane Hume said the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill 2021 would expand the role of the Financial Services and Credit Panel to operate as the single disciplinary body for advisers, “to ensure that less serious misconduct does not go unaddressed”.
Ms Hume added that the bill would create additional penalties and sanctions for financial advisers who have breached their obligations under the Corporations Act, introduce a new registration system for advisers “to improve the accountability and transparency of the financial services sector”, and transfer functions from FASEA to the minister responsible for administering the Corporations Act and ASIC “to streamline the regulation of advisers”.
“In line with the announcement made on 9 December 2020, FASEA will be wound up and its standard‑making functions moved to be the responsibility of the Treasurer, supported by Treasury. ASIC will be responsible for administration of the adviser exam,” Ms Hume said.
“In addition, tax (financial) advisers will no longer be regulated by the Tax Practitioners Board but instead will be regulated only under the Corporations Act 2001. This is consistent with the recommendation made by the Tax Practitioners Board Review.”
Ms Hume said the bill also included provisions to provide an exemption for advisers who had failed the FASEA exam multiple times to resit in 2022.
“These reforms will further streamline the number of bodies involved in the oversight of financial advisers, delivering improvements to the regulatory framework for the sector and enhanced access to affordable and quality financial advice for Australians,” she said.
Please remember, pre Royal Commission, that the original plan was for this oversight body to be our peers..similar to the AMA and Doctors…what a win that would be…..Now thanks to the Royal Commission and a high profile case involving the FPA, Chief Justice Haynes said we’re incapable of self regulation and it’s needs to be Government regulated. We had a chance and the FPA blew it for us.. I’m really looking forward to a bunch of Choice and Union Super funds executives determining whether my advice is good and the resulting over regulation to come.
What about wholesale client advisers who don’t need to be on the FAR? Sounds like there is a gap in the legislation
Ahhh… that’s their next bombshell. Everyone will need to be on FAR eventually to justify ASIC’s relevance and keep revenue flowing 😉
I’m assuming we will get a refund of recently paid TPB fees, for ‘services’ to be provided.
Have any details of this been announced?
Imagine getting money back from the TPB?
Apparently the AFSL still has to be registered for TPB on behalf of Advisers, so dont expect any refund and dont expect to not be paying this rego fee again on top of the New NOT Single Disciplinary Body.
More layers of BS crap.
No refund. According to the SMSFA discussions, the TPB fees already paid are going to be transferred over to the new regulator and there will be a continuation in TPB registration period.
More adviser bashing…REALLY? WTF is it with these politicians and their hatred of advisers??
This just has to be a deliberate plan to push all advisers out.
I am completely confused. They are saying I need to be registered as an Adviser through ASIC by the licensee, I always thought I was a registered adviser. I am on the ASIC adviser search register with all my details and qualifications etc. I thought my adviser authorised rep number was registered with ASIC, I don’t understand why they want to go through this process again ?
Duplicate, repeat and duplicate again.
Absolute morons and costly layer upon layer of BS Govt crap
Yep more BS from HUME and the LNP.
[b]The so called SINGLE Disciplinary body that was never going to be a SINGLE Disciplinary Body and is NOT a SINGLE Disciplinary Body for Advisers. It’s effectively a replacement Disciplinary Body for 2 out of 9 bodies.
So Advisers still have 8 Disciplinary bodies !!!!!!!!!! [/b]
Ms HUME, FRYDENBERG, LNP & ASIC you are all a bunch of total Liars and continue to add more and more BS Red Tape REGS and COSTS to Real Advisers and our clients.
[b]LIES, LIES and MORE LIES !!!!!!!!!!!!!!!!!!!!!!!!!!![/b]
Vote out HMUE, FRYDENBERG and LNP.
ASIC also needs a total clean out.
The ALP will be worse if they win government!
Seem to remember a song from my childhood about better to die on my feet than live on my knees. I will never vote Labor (you are right – they will be worse) but the Liberal are so incompetent – I’m done voting Liberal.
Me too…
Midnight Oil 8)
I don’t think the ALP will be worse at all. The ALP kept commissions for life insurance, introduced grandfathering and didn’t impose the #ASICtax.
The Liberals are no friend of small business.
Good point, but still no reason to vote Labor or Liberal. Their loss – and I’m taking a few votes with me, and I keep telling clients all about it.
That is quite beautiful rewriting of history, leaving out the odd detail like FoFA. Great trolling.