How FASEA's influence will linger beyond 1 January 2022



The Financial Adviser Standards and Ethics Authority (FASEA) will live on until it ceases to exist legislatively on 1 January, next year, but its decisions including the code of ethics will continue until amended by the minister.
That is the bottom line of the exposure draft legislation released by the Government around the new single disciplinary body which makes clear that the authority’s decisions will continue to remain in force.
“This means that financial advisers will need to continue to meet the education and training standards and the code of ethics made by FASEA, until such time as the minister amends these standards or makes new standards,” the explanatory memorandum said.
The exposure draft also makes clear that it is the Australian Securities and Investments Commission (ASIC) which will be the ultimate decision-maker about whether financial advisers who have qualified overseas will be eligible to practice in Australia.
“A person who wants to be a financial adviser in Australia and who has completed a foreign qualification may apply to ASIC for approval of the foreign qualification,” it said. “ASIC may approve an application if it is satisfied that the foreign qualification is equivalent to a degree or qualification approved by the minister and the person has completed any courses that ASIC requires the person to complete.”
The exposure draft explanatory memorandum said this “ensures that persons who study outside Australia meet the same high standards for providing financial advice, which is important for maintaining confidence in, and the integrity of, our financial advice industry”.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.