The federal government has introduced new legislation to deal with recommendation 2.10 of the Financial Services Royal Commission Final Report – find it here on page 28.
The proposed legislation expands the role of the Financial Services and Credit Panel with ASIC to operate as the single disciplinary body for financial advisers.
The draft bill also created new penalties and sanctions for advisers found to breach obligations and introduces a new annual registration system. Under the draft legislation functions from FASEA will be transferred to the Minister responsible for administering the Corporations Act and to ASIC.
These changes line broadly line up with the FSU’s submission to the Hayne Royal Commission but the devil is in the detail.
We are inviting financial advisers to provide FSU feedback on the draft legislation that is out for consultation.
The consultation period closes very soon, so make sure you have your say before Friday 7 May.