The Morrison Government has today released for consultation a Policy Paper on key parts of the Regulations to support the establishment of the single disciplinary body for financial advisers.
The Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill 2021 (Better Advice Bill) was introduced into Parliament on 24 June 2021 and delivers Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to establish a new disciplinary system for financial advisers.
The Better Advice Bill expands the role of the Financial Services and Credit Panel within the Australian Securities and Investments Commission (ASIC) to operate as the single disciplinary body with certain disciplinary decisions of the Panel to be listed on ASIC’s publicly accessible Financial Advisers Register.
The Better Advice Bill passed the House of Representatives on 4 August 2021 and demonstrates the Government’s commitment to strengthen oversight of the financial advice sector and increase transparency for Australian consumers when accessing financial advice.
The Policy Paper seeks feedback on the following elements in the Better Advice Bill that will be set in Regulations:
- the circumstances when ASIC must convene a Financial Services and Credit Panel to consider alleged financial adviser misconduct; and
- the types of administrative sanctions made against a financial adviser that must be included on the Financial Advisers Register.
Stakeholder feedback will inform the development of exposure draft Regulations which will be released later this year for further consultation. It is intended that Regulations will come into force on 1 January 2022, subject to passage of legislation.
The Policy Paper is available on the Treasury website.
Submissions are invited by Friday 20 August 2021 and can be sent to SDBconsultation@treasury.gov.au.