Adviser disciplinary body legislation still in the works, says minister

The advice industry may have a little longer to wait until it sees more detail on the government’s response to the royal commission recommendation to introduce a single disciplinary body for advisers, with Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume confirming legislation will be introduced “before the end of 2020”.

Addressing the Self Managed Superannuation Fund Association National Conference 2020 in the Gold Coast on Wednesday, Ms Hume said the aim of the disciplinary system was to strengthen the advice system and improve access to quality advice.

“In line with the royal commission’s recommendation, the government will introduce a new disciplinary system for advisers which will bring them into line with other professions such as lawyers, doctors and accountants,” she said.

“Legislation for that system is scheduled to be introduced by the end of 2020, ultimately strengthening the advice sector by improving access to high quality and affordable advice that will help [consumers] to make better financial decisions.”

Ms Hume said implementing the recommendations of the royal commission was “the government’s number one priority” when it came to legislative issues to address in financial services this year, meaning other government policies such as increasing SMSF member numbers and relaxing rules around super contributions for retirees may have to wait.

However, she indicated recently introduced legislation to extend the timeline for advisers to meet the requirements of the FASEA regime was expected to be passed imminently.

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“Last week I was very pleased to see the House of Representatives pass legislation to give existing advisers more time to meet the new exam and educational requirements,” Ms Hume said.

“It soon goes to the Senate, where I am very confident that it will be passed unopposed.” 

Adviser disciplinary body legislation still in the works, says minister
Jane Hume
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