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FASEA Media Release – Update on the establishment of the Financial Adviser Standards and Ethics Authority

13 July 2017

The Board of the Financial Adviser Standards and Ethics Authority Limited (FASEA) recently met for its inaugural Board meeting. The Board is committed to raising the education, training and ethical standards of financial advisers to improve trust and confidence in the financial advice sector.

The Chair of FASEA, Catherine Walter AM said: “The Board is taking careful steps to set appropriate levels of professional and ethical behaviour for financial advisers to aid development and recognition of the profession.”

A key priority of the Board will be the appointment of a Chief Executive Officer (CEO). The Board has retained Egon Zehnder to assist in the search for and recommendation of a CEO and hopes to make an announcement on the position in coming weeks.

“The Board is aware of the need to provide stakeholders with clarity on the new standards and understands the desire of industry to have sufficient time to implement the requirements,” Ms Walter said.

FASEA has been established by the Turnbull Government to set:

  • education qualifications for financial advisers at AQF level 7 (Bachelor Level) or equivalent;
  • an exam;
  • the professional year requirements; and
  • the continuing professional development requirements and
  • the Code of Ethics for financial advisers.

Under the reforms:

  • new financial advisers will require a degree, will need to undertake a professional year and to pass an exam from 1 January 2019;
  • existing advisers will need to pass the exam by 1 January 2021 and complete any necessary bridging courses by 1 January 2024; and
  • all financial advisers will need to subscribe to a Code of Ethics from 1 January 2020.

The Board is mindful of ensuring that education providers have sufficient time to develop courses and gain accreditation, and that new and existing financial advisers have certainty as they transition to the new arrangements.

The Board recognises the importance of keeping consumers, practitioners and industry informed on the development of the reforms and providing opportunities for consultation on the new framework.

The next meeting of the FASEA Board will be August 14, 2017.