The Financial Planning Association (FPA) was amongst the first to welcome confirmation that the Government had finally placed the legislation on the Parliamentary notice paper necessary to extend key Financial Adviser Standards and Ethics Authority (FASEA) time-frames.
The Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume, promised the extension in the wake of the Association of Financial Advisers (AFA) national conference in October and the legislative measures have been included in an omnibus bill – the Treasury Laws Amendment (2019 Measures No. 3) Bill 2019.
The key legislative measures for financial advisers are contained in Schedule 2 of the bill —Deferring education and training standards for existing financial advisers.
While there is no guarantee that the Government’s legislative measures will pass both houses of the Parliament, they are contained in a bill encompassing other measures such as the taxation of testamentary trusts.
The second reading speech covering the legislation stated the “bill extends transitional deadlines for new requirements for financial advisers. Existing advisers will be required to complete the exam set by FASEA by 1 January 2022, which is an additional year, and meet FASEA's qualification requirements by 1 January 2026, which is an additional two years”.
“This extension will ensure financial advisers have sufficient time to meet the new requirements, balancing the professionalisation of the industry with the need to maintain the ongoing flexibility and affordability of advice. In particular, the extension assists rural and regional advisers and working parents, including parents taking parental leave during the transition period, maintaining a diverse adviser industry.”