Hume delivers on FASEA extension

The Federal Government has delivered on granting financial advisers more time to meet the Financial Adviser Standards and Ethics Authority (FASEA) requirements.

After failing to make the announcement at this week’s Association of Financial Advisers (AFA) conference in Adelaide, the Minister for Superannuation, Financial Services and Financial Services Technology, Senator Jane Hume, made the announcement late this afternoon (Friday).

She announced that, under the new requirements, advisers who were registered on the Financial Adviser Register on 1 January, 2019 must:

  • Complete the FASEA-approved exam by 1 January 2022 (one additional year); and
  • Meet FASEA’s qualification requirements by 1 January 2026 (two additional years). These changes will not apply to new advisers registered after 1 January, 2019.

Hume’s statement noted that currently the exam is only available in capital cities, and will not be available in regional areas until September 2019 and that the extension of the exam would ensure that all advisers, including rural and regional advisers, would have two years to sit the exam, as originally intended. 

“The extension of the qualification requirements will assist working parents, including those taking parental leave during the transition period, to have sufficient time to meet the requirements, maintaining a diverse adviser industry,” she said.

“Ultimately, strengthening the financial adviser sector will benefit all Australians, as they will be able to access better quality advice that is affordable and helps them make good financial decisions.”




Author

Comments

Comments

A welcome start by Hume in fixing some of the FASEA problems.

Next step is to fix FASEA Code Standard 3. At the moment it could easily be interpreted and enforced by regulators as precluding certain arrangements which are currently quite legal and in clients' best interests. The CEO of FASEA was asked about this in a recent FPA webinar and gave a very unconvincing reply. Ministerial intervention is needed.

Add new comment