AFA News 22 July 2021. On Friday 16 July 2021, AFA President Mike Nowak, Vice President Sam Perera, and Acting CEO Phil Anderson presented at a hearing of the Senate Economics Committee, that was holding an inquiry into the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021. This is the Bill to introduce a Single Disciplinary Body (SDB).
In our opening presentation and through the responses to questions from the committee members we made the following key points.
- Minor and administrative matters should not be reported to or considered by the Financial Services and Credit Panel (FSCP).
- Matters considered by the SDB should align with the new breach reporting regime.
- All FSCPs should have at least 3 members for all decisions.
- The costs of operating the Single Disciplinary Body need to be sensibly controlled.
- The proceeds of any infringement notice penalties should be applied to offset the cost of the SDB scheme.
- There should be no additional education and training standard for tax (financial) advisers.
Unless this Bill is amended it will lead to a significant number of minor and administrative matters that will be investigated by either ASIC or the FSCP and will add significantly to the cost of the ASIC Funding Levy.
Please click here to see a copy of the AFA’s submission to the Senate Economics Committee.
Please click here to see a video of the AFA delegation at the Senate Economics Committee.
The Senate Economics Committee will consider the submissions that they have received and the information presented by witnesses at the hearing and then release a report by 28 July 2021. The Parliament returns from the Winter recess on 3 August 2021, and we will need to wait to see how the Government responds to the Senate Economics Committee report.
This is the first Royal Commission related Bill that has involved a Parliamentary hearing, so it was certainly a positive to see this eventuate. None of these Banking Royal Commission Bills have been subject to the normal Regulation Impact Statement process, which in our view, is a fundamental weakness and has exposed the financial advice population to some ill-considered legislation and unintendednegative consequences.
For any questions on the Single Disciplinary Body, please email firstname.lastname@example.org.
Issued 22.07.2021. AFA Policy & Education Update