| Financial adviser standards Bill receives Royal Assent
The Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 received Royal Assent on 22 February 2017. The Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 commenced on 15 March 2017, as fixed by Proclamation. A commonwealth standards body will be established under the Act to set the professional, educational and ethical standards of financial advisers. The Government anticipates that the standards body will be established by mid-2017. The reforms take effect from 1 January 2019. From this date, all new advisers will be required to hold a relevant degree before they are eligible to commence the supervision year and to sit the exam. Existing advisers will have 2 years, until 1 January 2021, to pass the exam and 5 years, until 1 January 2024, to reach a standard equivalent to a degree. A Code of Ethics will commence on 1 January 2020. All advisers will be required to adhere to the code from that day forward. Our February 2017 Financial Advisory Services Update provides further information on the reforms, and how we will support members once the new standards body is established. On 22 February this year we contributed to Treasury’s roundtable consultation on the draft constitution for the new standards body and the ongoing funding model for the body. On 6 March we also provided a submission to Treasury on these matters. In regard to the ongoing funding model for the body, we recommended that consideration be given to the principles of equity, efficiency and effectiveness. We advocated that costs should only be levied in a way that increases public trust, confidence and engagement in the financial advice industry, and reduces complexity and regulatory burden, particularly for small and medium sized practices and those in rural and regional Australia, including through streamlining the many existing levy collection points for financial advisers. Read the Bill and Explanatory Memoranda > Financial advisers register Regulations amended The Corporations Legislation Amendment (Professional Standards of Financial Advisers) Regulations 2017 have updated the Corporations Regulations 2001 to move the provisions governing the Register of Relevant Providers (i.e. the Financial advisers register) to s 922Q of the Corporations Act 2001. Section 922Q(1) of the Corporations Act provides that ASIC must enter details on a Register of Relevant Providers in respect of each person who is or was a relevant provider, and s922(2) specifies the contents that must be entered on the Register. The amending regulations complement the changes made by the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 which sets out the new professional, educational and ethical standards for financial advisers. |