Financial advisers who use the Financial Adviser Standards and Ethics Authority (FASEA) exam extension will have until 30 September, 2022, to pass the exam.
An announcement by Treasurer Josh Frydenberg and the Minister for Superannuation, Financial Services, and the Digital Economy, Jane Hume, said the Government had introduced the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill 2021.
It said the bill would give the minister the power to extend the cut-off date for certain existing financial advisers to pass the exam.
“The Government will use the power to extend the cutoff date to 30 September, 2022, for advisers who have attempted the exam twice prior to 1 January 2022,” the announcement said.
However, the announcement did not include timings of FASEA exams in 2022.
It also said the bill would:
- Expand the role of the Financial Services and Credit Panel within the Australian Securities and Investments Commission (ASIC) to operate as the single disciplinary body for financial advisers to ensure that less serious misconduct does not go unaddressed;
- Create additional penalties and sanctions for financial advisers who have breached their obligations under the Corporations Act, reflecting that the current set of sanctions are limited to banning a financial adviser;
- Introduce a new registration system for financial advisers to improve the accountability and transparency of the financial services sector; and
- Transfer functions from FASEA to the Minister responsible for administering the Corporations Act and to ASIC to streamline the regulation of financial advisers.
“In line with the announcement made on 9 December, 2020, FASEA will be wound up and its standard making functions moved to be the responsibility of the Treasurer, supported by Treasury. ASIC will be responsible for administration of the adviser exam,” the announcement said.
“In addition, tax (financial) advisers will no longer be regulated by the Tax Practitioners Board but instead will be regulated only under the Corporations Act 2001. This is consistent with the recommendation made by the Tax Practitioners Board Review.”