The Government will need to ensure that both Treasury and the Australian Securities and Investments Commission (ASIC) are adequately funded to handle the changes resulting from the close of the Financial Adviser Standards and Ethics Authority (FASEA) and the establishment of a single disciplinary body.
The Institute of Public Accountants (IPA) has welcomed the Government’s changes but warned of the need to ensure ASIC is funded sufficiently to handle its single disciplinary body role while Treasury is adequately resourced to handle the standards-setting role which has been undertaken by FASEA.
IPA chief executive, Andrew Conway, said his organisation welcomed what represented a rationalisation of numerous regulators and standards setters which operate in the financial advice sector but who have at times been in conflict with each other.
“Winding up FASEA was always going to be an option,” he said. “However, whilst the IPA welcomes reform and rationalisation, we urge the Government to ensure that Treasury and ASIC are well supported and funded to take over the standard setting and administration functions currently performed by FASEA. Regulation is dependent on proper execution.”
Conway said the IPA had been a long-time advocate of adequate funding for ASIC and this was even more critical because it had been given additional functions.
“The IPA is also keen to work with ASIC and other stakeholders on ongoing reforms, including in response to ASIC’s consultation paper (CP 332) which seeks to improve consumer access to affordable advice by addressing the impediments which currently prevent this,” he said.
“We look forward to the next steps and working with Treasury and ASIC to reach the common goal of protecting the consumer interest through the provision of reliable and affordable advice in the future.”
