The Financial Adviser Standards and Ethics Authority (FASEA) has been effectively scrapped with its role being rolled into the Treasury.
The announcement has been made by the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume who said the Government was moving the standard-making functions of FASEA to Treasury, with the standards to be set by legislative instrument.
She said remaining elements of FASEA’s role, including administering the adviser examination, will be incorporated into the expanded mandate of the Financial Services and Credit Panel (FSCP) within the Australian Securities and Investment Commission (ASIC).
Hume said the reforms would further streamline the number of bodies involved in the oversight of financial advisers, resulting in FASEA being wound up.
“The Government would like to acknowledge the important contribution made by the board and staff of FASEA towards improving the education, training and ethical standards in the financial advice sector,” she said.
“The FSCP currently supports ASIC in the exercise of its regulatory functions with respect to the making of banning orders against individuals for misconduct. Expanding the role of the FSCP will leverage its extensive expertise and existing governance structures, avoiding the need to establish a new body to perform this role.
“Consolidating this new function within ASIC will also avoid regulatory overlap and minimise the possibility of multiple investigations by multiple agencies into the same conduct related to the provision of financial advice.”
Comments
Is this a "hallelujah" moment, or a "what now" moment?
we will come direct under ASIC now, if could be an "OMG" moment(s)
Is this good news or bad news for us advisers?
A little bit of column A and a little bit of column B.
Out of the frying pan and into fire, one muppet organisation dead only to be handed to ASIC (keystone cops) BS society.
PLEASE can we just rid ourselves of the poisonous and biased past?
Just one professional standards body managed by true professionals who understand the financial advice, uphold professionalism, hold advisers to account in a strict fair manner but not in a kangaroo court.
No ASIC, no AFCA, FARSEA is dead (yay), no TPB.
FPA need not apply.
At least it's a start but NOWWHERE near enough.
I don’t think this is a good thing, especially if - as I’m assuming - all the standards have been thrown out. What now - we bloody start all over again??
And to have consolidated the SDB into ASIC...that feels like a huge mistake.
Removing FASEA doesn’t remove a regulator or an oversight body either - they administered the standards, they didn’t regulate them.
Spin, nonsense and short-sighted - that’s how it initially feels.
Once again, hopefully I’m wrong.
Hi Status-Quo, FASEA Standards and timeframes to achieve (i.e. exam and education standard) won't change, so you don't have to worry there. Some are concerned it's going to ASIC, but can ASIC do a worse job that the conflicted FASEA Board and their cronies? ASIC won't want to eff-up after the getting bashed up by Hayne @ the Royal Commission and now the Shipton expenses rorts debarcle. I'm hopeful.
FASEA standards setting is going to Treasury not ASIC. I have heard that Treasury has a lot of hard core financial adviser haters, so this may yet be a turn for the worst. At least Treasury won't be driven by conflicted course providers though.
oh no. we have to deal with aSuck. that is a far worse thing for us.
i have already passed the fasea exam and got the approved degree now i have to deal with the incompetents at ASic.
this is too much. i am leaving
Bye bye.
shut up moron.
this is even worse news. ASIC hate financial advisers. we are finished now!
I hope it’s for the better - “Jane Hume who said the Government was moving the standard-making functions of FASEA to Treasury, with the standards to be set by legislative instrument.” I’d rather legislation drive standards than a conflicted board of academics pushing their own courses...
A change of name, a change of who’s overseeing it, etc.
But NO real reduction in BS compliance costs and red tape Regs.
And now ASIC are meant to oversee Corps Act and FARSEA Standards.
Of which conflict each other so many times. So then the higher Standards must be Laws ?
And the very same ASIC are up to their necks in making FARSEA completely unworkable in the real world via paid for conflicted Uni research to make Standard 3 beyond anything any industry could ever work with.
Struggling to see a lot of benefits ??
Nothing to see here folks. You will still need to do the exam, pass the subjects and abide by the 10 commandments if you want to stay and play.
Yeah, I still can’t see this as a good thing. It’s hardly a step towards professionalism, that’s for sure.
Though one small upside - ASIC might at least have to read the Code of Ethics now.
LOL
Deflecting examination of the corruption at FASEA - pushing to line their own pockets, got what they wanted now look over there.
So there is a Santa Claus!!
This does NOT minimise the possibility of multiple investigations by different agencies. It does NOT comply with Hayne's recommendation for a single disciplinary body. The missing piece of the solution is removal of other agencies from financial advice regulation such as TPB and AFCA. Until that happens there is no net reduction in regulatory cost and complexity.
FASEA was never a disciplinary body in the first place, and they have effectively just been shuffled elsewhere. Hopefully minus their biased, conflicted, and corrupt Board members.
I can't but help think of that joke that goes in heaven, the cooks are all Italian, the lovers are french, cars are made in Germany, and Britain are the leaders. Whilst Hell, is a mix up, where the lovers are the British and the cars are made by the French, the Police are the Germans and the leaders are Italians. I have a strange feeling with this shuffling we're in hell with ASIC in charge.
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