The Financial Planning Association of Australia (FPA) has called on the Senate to pass the Financial Adviser Standards and Ethics Authority (FASEA) extension bill now that the Government has removed the exemption that allows stamping fees on listed investment entities.
The Federal Government announced yesterday the ban on conflicted renumeration would be extended, following the consultation by Treasury.
Dante De Gori, FPA chief executive, said the exemption was welcomed as it ensured Australians continued to invest with confidence in listed investment companies (LICs) and listed investment trusts (LITs).
“[Yesterday’s] announcement also removes any impediment to passing the much-needed Treasury Laws Amendment (2019 Measures No.3) Bill 2019, which will grant financial planners an extension to complete new education requirements,” De Gori said.
“Our members are calling on the Senate to pass the bill at the next parliamentary sitting on 10 June.
“Many of our members have been eagerly waiting on confirmation that the FASEA exam deadline would be extended, giving them critical time to focus on helping their clients navigate the COVID-19 pandemic and economic crisis.”
The Labor Party had previously stalled on passing the FASEA extension as it wanted to debate issues surrounding LICs, which were included in an omnibus bill along with the FASEA extension.
“A further delay from Senate will add even greater uncertainty to financial planners, who are expected to help 2.7 million Australians seeking financial advice over the next three months in response to major changes in their employment, their investments and their prospects for retirement,” De Gori said.