Minister for Revenue and Financial Services Kelly O’Dwyer says the government is open to engaging in a dialogue over reform of the definition of independent financial advice.
Speaking to press on the sidelines of the AFA national conference on the Gold Coast today, Ms O’Dwyer said that while the Turnbull government supports the corporate regulator’s enforcement activity, it is ready and willing to hear the case for reform of section 923A of the Corporations Act to expand the definition.
“We believe its important that those who hold themselves out to be independent are genuinely independent and we support ASIC’s work on that front,” Ms O’Dwyer said.
“Where changes are required we will always be open to listening to industry, we look forward to having that discussion and I’m sure that will be one of the topics.”
In June, the corporate regulator issued a shock clarification of the act, explaining that advisers and licensees who do not meet the existing definition of independent financial advice will no longer be able to describe themselves as “independently-owned” or “non-aligned”.
A number of lobbying efforts are currently underway seeking reform of s923A. In August, the AIOFP and former regulatory investigator Brett Walker released a white paper making the case for reform.
The prudential regulator has released its latest corporate plan.
The bid was originally put forward in June.
ASIC has issued a permanent ban to the former financial adviser.
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