The Government has released for consultation exposure draft regulations and a draft legislative instrument supporting the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021 (the Better Advice Bill).
The Better Advice Bill was introduced into Parliament on 24 June 2021 and implements:
- recommendation 2.10 of the Financial Services Royal Commission to establish a single disciplinary body and new registration system for financial advisers;
- recommendation 7.1 of the Independent Review of the Tax Practitioners Board (TPB) to introduce a single disciplinary and registration system for financial advisers that provide tax (financial) advice services; and
- the Government's decision to wind up the Financial Adviser Standards and Ethics Authority (FASEA) and transfer its functions to the Government, with the Australian Securities and Investments Commission (ASIC) responsible for administering the financial adviser exam
The Government seeks stakeholder feedback on the exposure draft regulations and legislative instrument which implements key elements to support the operation of the Better Advice Bill. These include:
- setting the criteria for when ASIC must refer matters to the single disciplinary body;
- specifying the administrative sanctions made against a financial adviser that must be included on the Financial Advisers Register;
- extending the deadline to complete the financial adviser exam to 30 September 2022 for financial advisers who have attempted the exam twice before 31 December 2021;
- proposing new fees for the financial adviser exam and registration of financial advisers from 1 January 2022; and
- outlining the registration, education and training requirements for financial advisers providing tax (financial) advice services.
It is intended the Better Advice Bill and the supporting regulations and legislative instrument will come into force on 1 January 2022.
Interested stakeholders are invited to comment on the exposure draft regulations and legislative instrument by 15 October 2021.