Annual financial adviser registration at heart of new disciplinary regime

The Government has proposed to introduce a new annual registration system for financial advisers and to create new penalties and sanctions to apply to financial advisers that have found to have breached their obligations, including deregistration. 

In its single disciplinary body for financial advisers consultation draft legislation released today the Government also proposed to expand the role of the Financial Services and Credit Panel (FSCP) that would allow it to cancel financial planner registrations, and act against planners, licensees, and directors of licensees. 

“The draft legislation expands the role of the Financial Services and Credit Panel within the Australian Securities and Investments Commission (ASIC) to exercise the functions of the single disciplinary body for financial advisers,” it said. 

“It proposes to create new penalties and sanctions to apply to financial advisers found to have breached their obligations and introduces a new annual registration system for financial advisers.” 

The draft legislation would also remove the requirement for tax financial advisers to be registered with the Tax Practitioners Board, and ensured relevant tax experts were appointed to the FSCP to hear disciplinary matters that involved tax-related advice. 

Submissions for the consultation would be open until 14 May, 2021.  




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So given an annual registration system approach, does this not pave the way for the demise of the AFSL structure?

You’d have to think so. Apply annually to keep your registration, outsource your compliance requirements to external parties to keep the business on the straight and narrow. I wonder if that’ll be better or worse, time will tell I suppose.

And what will this cost us???

Please let me know where I can access this draft legislative instrument

https://www.moneymanagement.com.au/news/policy-regulation/asic-appoints-...

List of Experts?

We are now completely ruled by ASIC and this lot - thanks Dante. What a mess.

Yet another regulatory tier. More jobs for the public service which we, no doubt, will be funding. There has to be some push back on the horizon.

The draft legislation should also remove the requirement for financial advisers to be registered (via their licensees) with AFCA and Austrac. Otherwise the so called SINGLE Disciplinary Body is YET ANOTHER Disciplinary Body.

If we are simplifying the system why would you have annual renewal?
Surely once you are registered then you would only need to update the register if you were no longer eligible to on it???
Why the double handling???

Because annual registration is part of being a Profession. Nurses, Dentists, lawyers, Doctors, all do it - with one central body each. This is a great move. That is my thought, as someone over forty years in the industry, who always hoped we would become a Profession, but won't be part of it, as I'm not doing the extra study, even after passing the second sitting of the FASEA examination.

Jesus. Does the government not want planners anymore? Who's left? Accountants and lawyers lol

Are you kidding me?? So not only do we have to maintain points, be a part of a professional body (AFA,FPA), pay $500 for an exam, pay for at least two additional subjects on top of a grad dip, pay for increased PI, pay for increased compliance burden and regulatory over and mis-handling, but now we’re ALSO going to have to answer to these fat cat banking bozos as well who will be able to implement legislation that punitively targets advisers and dealer groups (leaving banks, industry funds, platforms, fund managers and Insurers untouched), AND we’re going to have to register with yet ANOTHER psycho-semantic-wanna-be-‘professional’ body ?!!!! When....is this....rubbish....going to end, seriously?!!
A person who steps away for 18 mths (to have children, take care of family members, have a career break, gets ill...), is found either in breach or will be required to re-register and go through PY etc all over again?! Surely not even the FSC are dim-witted enough to put forward such a plan! I’ve been all for sorting the wheat from the chaff, but if we’d not been delivered to hell in a hand basket already, this will certainly finish the job.

Yep...another fee, on top of the ASIC Supervisory Levy. And if you've already paid your TPB Fee for the next 3 years, you won't be getting a refund on that one either. More $$$$ going to support the ever increasing beaurocracy of ASIC & Treasury. And Minister Hume says "roboadvice" will fix the ills of the industry. It's about time we had a summit into the industry and rebuild the compliance requirements it from scratch.

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