The Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill 2021 was introduced into Parliament on 24 June 2021.
The Bill will implement recommendation 2.10 of the Financial Services Royal Commission by:
- expanding the role of the Financial Services and Credit Panel (within ASIC) to operate as the single disciplinary body for financial advisers;
- creating additional penalties and sanctions for financial advisers who have breached their obligations under the Corporations Act;
- introducing a new registration system for financial advisers; and
- transferring functions from FASEA to the Minister responsible for administering the Corporations Act and to ASIC (including administration of the adviser exam). Standard making functions will also be transferred to the Treasurer (supported by Treasury)
- the Minister will have the power to extend the cut-off date for certain existing financial advisers to pass the adviser exam. There will be a one-time limited extension offered in 2022 for advisers who have made two genuine attempts to pass the FASEA exam prior to 1 January 2022. If advisers have not sat the exam twice prior to 1 January 2022, no extension will be granted. Costs and timings for the 2022 period are yet to be confirmed, but the extension will not extend beyond 30 September 2022.
- tax (financial) advisers will no longer be regulated by the Tax Practitioner Board but instead be regulated under the Corporations Act.
The changes will take effect on the day after Royal Assent, with the new disciplinary and registration system for financial advisers to apply from 1 January 2022.
Treasurer of Australia, Better Advice Bill introduced into Parliament, 24 June 2021
Senator Jane Hume, FASEA Update, 24 June 2021
Parliament of Australia, Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill 2021, 24 June 2021