Less than two (2) years after establishing the Financial Adviser Standards and Ethics Authority (“FASEA“), the Morrison Government has announced the dissolution of FASEA. Going forward, FASEA’s functions will be split between Treasury and the Australian Securities and Investments Commission (“ASIC“). Treasury will be responsible for maintaining the financial adviser professional and ethics standards previously set by FASEA whilst ASIC will administer the financial adviser exam.
FASEA’s dissolution comes as part of a Government initiative to streamline the regulation of financial advice. In April 2021 the Government released draft legislation which proposes a new disciplinary system for financial advisers, effectively expanding the role of the Financial Services and Credit Panel (“Panel”) within ASIC. Under the draft legislation, the Panel can take action against advisers who have breached the Corporations Act or in circumstances where the adviser has become insolvent, is not a fit and proper person or has been convicted of fraud.
- The Government has not yet provided a timeline for FASEA’s dissolution but it is expected to coincide with the termination of FASEA’s funding at the end of the 2020/21 financial year.
- Financial advisers must note that all current standards will remain in place and must be completed. This includes the FASEA exam and education standards.
FASEA was established to set the education, training and ethical standards of licensed financial advisers in Australia in an aim to professionalise the Australian financial advice industry.
- Strengthening and streamlining oversight of the financial advice sector
- Single Disciplinary Body for Financial Advisers
Please contact us should you require more information on the dissolution of FASEA or how the financial advisers’ education, training and ethical standards impact you.