FASEA scrapped and will be rolled into Treasury
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.”
Recommended for you
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
Praemium is to acquire an advanced technology firm for $7.5 million, helping to boost its strategy to be a leader in AI-powered wealth management.
