Recommendation 2.10 of the Financial Services Royal Commission Final Report recommended the establishment of a single disciplinary body for financial advisers and the requirement that all financial advisers who provide personal financial advice to retail clients be registered.
The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021 delivers this Recommendation and was introduced into Parliament on 24 June 2021.
The Government has released a policy paper seeking feedback on two matters which will be included in regulations to support the single disciplinary body. That is:
- the circumstances when ASIC must convene the single disciplinary body to determine a disciplinary matter; and
- the types of administrative sanctions made against a financial adviser that must be included on the Financial Advisers’ Register.
Interested parties are invited to comment on the proposals by 20 August 2021. Stakeholder feedback will inform the development of exposure draft Regulations which will be released later this year for public consultation.
It is intended that Regulations will come into force on 1 January 2022, subject to passage of the Bill.