Advice sector ‘struggling to get their heads around’ incoming regulations

In what chair Joe Longo conceded is a “complex transition”, new reforms around information sharing, breach reporting and hawking will be introduced between 1 and 5 October.

Among the changes include AFS licensees needing to notify clients affected by any breaches of the law within a certain time frame and a new reference-checking regime to vet potential advisers.

ASIC commissioner Danielle Press addressed the incoming regulations during a parliamentary hearing on Friday.

“We are working collectively and constructively with the advice industry and the superannuation industry to ensure that they, firstly, understand what their obligations are, but also to take what is a facilitative approach to those funds and those advisers that are making their best efforts to comply with the law,” Ms Press said.

“We understand that there is a confluence of regulation coming into play on the 5th of October and we are cognisant that industry is struggling to get their heads around some of it and we are working with them pretty closely.”

Following the announcement earlier this month, Mr Longo was optimistic about the potential impact of each reform, asserting that the changes will help ensure fairer outcomes for consumers.

“The benefits will increase over time as consumer outcomes become the focus and experience accrues,” he said.

“We want to ensure the reforms are successfully implemented – and that means we will continue to work with industry, and build on the efforts by industry associations and individual licensees in preparing for these reforms.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.