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The government has released new draft regulations and legislative material for consultation to support the incoming advice reforms from the Better Advice Bill.
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Government unveils new regulations for incoming Better Advice Bill
30 September 2021
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The Morrison government has released for consultation exposure draft regulations and a draft legislative instrument underpinning the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill 2021 (the Better Advice Bill).
The Better Advice Bill establishes a single disciplinary body and new registration system for financial advisers, including tax (financial) advisers. It also winds up the Financial Adviser Standards and Ethics Authority and transfers its functions to the government. The Australian Securities and Investments Commission (ASIC) will be responsible for administering the financial adviser exam.
The Better Advice Bill passed the House of Representatives on 4 August 2021 and is proposed to commence on 1 January 2022.
Superannuation and financial services minister Jane Hume said the exposure draft regulations and legislative instrument will implement key elements to support the operation of the Better Advice Bill.
“It will set the criteria for when ASIC must refer disciplinary matters to the single disciplinary body to ensure the new system is effective in identifying and addressing financial adviser misconduct,” she said.
“The bill will also prescribe which administrative sanctions made against a financial adviser must be included on the Financial Advisers Register to increase public transparency and consumer protection, and set a framework for the financial adviser exam to be administered by ASIC.”
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The new changes also include extending the deadline to complete the financial adviser exam to 30 September 2022 for financial advisers who have attempted the exam twice before 31 December 2021 and setting new fees for the financial adviser exam and registration from 1 January 2022.
Furthermore, it will outline the registration, education and training requirements for financial advisers providing tax (financial) advice services.
It is intended that the Better Advice Bill and the supporting regulations and legislative instrument will come into force on 1 January 2022.
Interested stakeholders are invited to comment on the exposure draft regulations and legislative instrument by 15 October 2021.
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