ASIC has told the profession to stay on top of updating systems and processes as required after the DBFO Act received royal assent this week.
In a statement on Thursday, the corporate regulator acknowledged the royal assent of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 (DBFO Act), noting that this marks “an important step in advancing reforms to financial advice regulation”.
“Industry should be aware of the reforms, including transitional periods if applicable, and have, or be in the process of updating, systems and processes as required,” the Australian Securities and Investments Commission (ASIC) said in a statement.
The DBFO Act acknowledged the government’s response to recommendations 7, 8, 10, 13.1–13.5 and 13.7–13.9 of the Quality of Advice Review.
Reforms under the act include:
ASIC noted that it has registered ASIC Corporations (Amendment) Instrument 2024/554 which makes consequential amendments to its instruments to reflect the changes to FSG requirements. Moreover, the regulator has amended condition 52 of Pro Forma 209 Australian financial services licence conditions (PF 209) to ensure technology neutrality in FSG record-keeping requirements.
Changes to PF 209 will apply only to entities applying for an Australian Financial Services Licence going forward, it said.
Over the coming months, ASIC noted it will update regulatory guidance impacted by the DBFO Act, including ongoing fee arrangements and consents to deduct fees or costs under non-ongoing fee arrangements. This should be done by November 2024.
More to come.
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