More on the Single Disciplinary Body and the FASEA Exam

AFA News 30 April 2021. One week after the release of the exposure draft legislation for the Single Disciplinary Body (SDB) we are now reflecting on the key changes that this new regime will deliver.  In the last week, we have had the benefit of discussing this and other important issues with the Minister and to participate in a roundtable with Treasury.

Firstly, it is important to note that under this new model, disciplinary matters will be dealt with by a panel of three people, including two industry representatives. The Chair of each panel will be an ASIC person, however, there will now be a greater opportunity for people with industry experience to look at these matters. We remain concerned that the SDB will be required to focus on administrative and minor matters, rather than focusing on the more important matters, and this will be part of our feedback during this consultation process.

It is important to note that under this proposed legislation, FASEA will remain operational until 31 December 2021, which is the same timeframe as the deadline to complete the FASEA exam. After that date, responsibility for the FASEA standards will be passed back to the Minister.  The obvious implication of this is that the Minister will not have the opportunity to change the exam standard before the deadline.  We believe it is important to be clear with members, that there will not be any change to the exam requirement and all advisers who wish to stay in the profession will need to ensure that they have done everything to pass the exam before the end of 2021. Put simply, we do not think there is any prospect of changes being made to this requirement. We ask all those advisers who are still considering the exam to book themselves into the support programs that are available (particularly Kaplan and the TAL Risk Academy) and then book themselves in for the exam.

The SDB exposure draft is open for consultation until 14 May 2021, and members are encouraged to either make a submission or to provide feedback to the AFA at [email protected]

Issued 30.04.2021. AFA Policy & Education Update