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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