As of 1 January 2022, FASEA’s functions have been transferred and the body has ceased operations.
This is in line with the Government’s previous announcements and comes just over two (2) years after the establishment of the Financial Adviser Standards and Ethics Authority (“FASEA”). FASEA’s dissolution comes as part of a Government initiative to streamline the regulation of financial advice.
Other reforms include:
- Creation of new penalties and sanctions for financial advisers who have breached their obligations under the Corporations Act;
- Introduction of a new two-stage registration system for financial advisers to improve the accountability and transparency of the financial services sector; and
- Proposing a new disciplinary system for financial advisers, effectively expanding the role of the Financial Services and Credit Panel (“FSC Panel”) within ASIC and allowing ASIC to refer certain misconduct to the FSC Panel;
- granting the FSC Panel powers to give a range of penalties, including warning and reprimands, commencing administrative action, issuing infringement notices or recommending that ASIC apply to the court for a civil penalty. ASIC is currently consulting on these updates to the FSC Panel.