AFA News 30 June 2021. On Thursday 24 June 2021, the Government tabled the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021, which will implement the Royal Commission recommendation of a Single Disciplinary Body.
The Government issued exposure draft legislation in April 2021 and the AFA made a submission in response to this on 14 May 2021. The Bill that was tabled in the Parliament last week includes some changes, however, it still requires ASIC or the Financial Services and Credit Panel (FSCP) to consider all breaches of financial services laws and the Code of Ethics. It continues to provide for the FSCP to have the power to terminate, suspend, reprimand or direct financial advisers to undertake training or supervision. The FSCP can also recommend the issue of an infringement notice, that would result in a fine of $2,664. The Single Disciplinary Body is scheduled to commence from 1 January 2022 and will consider all misconduct that occurs from 1 January 2022.
The Bill will also provide for financial advisers to be registered with ASIC. In the initial phase, prior to 1 January 2023, financial advisers will be registered with ASIC by their licensee. In the second phase which will be as much as a further four years later, when the new business registers regime is in place, advisers will be required to individually register with ASIC on an annual basis. This new registration obligation will include a requirement to provide a declaration of being a fit and proper person.
Unfortunately, the Government has not done a Regulation Impact Statement and have not estimated the number of matters that will be considered each year or the cost of operating this new regime. We should not underestimate the potential impact of this new regime.
For any questions on the Single Disciplinary Body, please email firstname.lastname@example.org.
Issued 30.06.2021. AFA Policy & Education Update