How FASEA's influence will linger beyond 1 January 2022

The Financial Adviser Standards and Ethics Authority (FASEA) will live on until it ceases to exist legislatively on 1 January, next year, but its decisions including the code of ethics will continue until amended by the minister.

That is the bottom line of the exposure draft legislation released by the Government around the new single disciplinary body which makes clear that the authority’s decisions will continue to remain in force.

“This means that financial advisers will need to continue to meet the education and training standards and the code of ethics made by FASEA, until such time as the minister amends these standards or makes new standards,” the explanatory memorandum said.

The exposure draft also makes clear that it is the Australian Securities and Investments Commission (ASIC) which will be the ultimate decision-maker about whether financial advisers who have qualified overseas will be eligible to practice in Australia.

“A person who wants to be a financial adviser in Australia and who has completed a foreign qualification may apply to ASIC for approval of the foreign qualification,” it said. “ASIC may approve an application if it is satisfied that the foreign qualification is equivalent to a degree or qualification approved by the minister and the person has completed any courses that ASIC requires the person to complete.”

The exposure draft explanatory memorandum said this “ensures that persons who study outside Australia meet the same high standards for providing financial advice, which is important for maintaining confidence in, and the integrity of, our financial advice industry”.