Disciplinary body legislation before Parliament

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.