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.
ASIC has granted a three-year exemption effective 14 November 2019 from financial adviser compliance scheme obligations to ensure that AFS licensees will not be in breach of the law, given they will not able to register their financial advisers with an ASIC approved scheme by 1 January 2020.
This follows the Government recently announcing that it will establish a single disciplinary body for financial advisers which will include monitoring and enforcing the FASEA Code of Ethics, rather than proceed with the compliance scheme framework.
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.