GOVERNMENT ANNOUNCES FASEA CHANGES
The Government announced on 11 October 2019 that a new financial adviser disciplinary body will replace the role of code monitoring bodies, which had been due to be established by industry associations under FASEA reforms.
The Government will accelerate the establishment of the disciplinary body for early 2021, subject to legislation. This action is based on recommendation 2.10 under the Hayne Royal Commission into misconduct in the banking, superannuation and financial services industry.
Consultations will begin immediately. ASIC announced on 15 October 2019 that it will make a legislative instrument to provide relief to Australian financial services (AFS) licensees from financial adviser compliance scheme obligations.
The FASEA Code of Ethics will still commence from 1 January 2020 and licensees will be required to take reasonable steps to ensure their representatives comply with it.