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.”