In a recent opinion piece published on ifa, Holley Nethercote Lawyers’ Clarisse Berenger said the legislation – which is set to commence on 1 January 2022 and will see the financial services and credit panel within ASIC become the single disciplinary body for financial advisers – would ensure more eyes on the advice industry.
“Apart from imposing yet another fee on the financial advice industry, the Better Advice Act has the potential to significantly ramp up the number and type of regulatory outcomes against individual advisers,” Ms Berenger wrote.
“Provided the [Financial Services and Credit Panel] FSCP is adequately resourced, more financial advisers are likely to come to the attention of the new disciplinary body where ASIC uncovers evidence of poor advice or poor conduct by financial advisers.”
In October, research released by Australian Advisory found that pressures of current ASIC compliance requirements were the biggest area of concern for financial advisers.
On Wednesday (22 December), ASIC moved to establish the Financial Services and Credit Panel (FSCP), which will be given its own statutory functions and powers from 1 January 2022.
“The powers of the FSCP under the act include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ASIC,” a statement released on Wednesday read.
“An FSCP may also: suspend or cancel a financial adviser’s registration; issue infringement notices in specified circumstances; recommend that ASIC commence civil penalty proceedings; and enter into enforceable undertakings with financial advisers.”
Ms Berenger said the industry would return from the Christmas break next year and await to see how ASIC “puts its new toolkit to use”.
“It will only be a matter of time before we know whether updating ASIC’s blunt tools with more precise instruments will have the desired effect of improving its craft,” she wrote.
Read the full opinion piece here.
Did Holley Nethercote really say the FSCP would be a single disciplinary body? If so, my opinion of them has diminished significantly.
It is NOT a single disciplinary body at all. Calling it such is a despicable lie by our worst Financial Services Minister yet, Jane Hume. Lawyers, media, and industry associations who repeat that lie are grossly irresponsible.
There is no single disciplinary body for financial advice. There are still multiple overlapping disciplinary bodies. It’s one of the reasons professional advice has become too complex and expensive for most consumers.
Our message to ASIC is look at the AFCA complaint numbers, look at their own results from their 627 Survey and understand that the Advice community does not want bad apples either so start using experienced Advisers to weed out the unwanted. Banning/charging some Insto bad apples is also highly recommended.
Not one good adviser has anything to worry about.
Merry Christmas to us….