The Federal Government is seeking feedback on when the corporate regulator should convene a Financial Services and Credit Panel (FSCP) and what sanctions should be included on the Financial Advisers Register (FAR), as part of consultation released on the Better Advice Bill.
The policy paper sought feedback on the following elements in the Better Advice Bill that would be set in regulations, which included:
- The circumstances when the Australian Securities and Investments Commission (ASIC) must convene a FSCP to consider alleged financial adviser misconduct; and
- The types of administrative sanctions made against a financial adviser that must be included on the Financial Advisers Register (FAR).
The Better Advice Bill passed the House of Representatives on 4 August, 2021, which aimed to legislate Recommendation 2.10 of the Royal Commission to establish a new disciplinary system for financial advisers.
It was intended regulations would come into force on 1 January, 2022, subject to passage of legislation.
Stakeholder feedback would inform the development of exposure draft regulations which would be released later this year for further consultation.
Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume, said the bill demonstrated the Government’s commitment to strengthen oversight of the financial advice sector and increase transparency for Australian consumers when accessing financial advice.
The Better Advice Bill expanded the role of the FSCP within ASIC to operate as the single disciplinary body with certain disciplinary decisions of the panel to be listed on ASIC’s FAR.
Submissions would close on 20 August, 2021.