Legislation passes transitioning FASEA to Treasury, ASIC

The major financial planning groups have been granted their wish with the Parliament passing the Better Advice legislation delivering the Single Disciplinary Body and shifting the Financial Adviser Standards and Ethics Authority (FASEA) functions into Treasury and ASIC.

The passage of the legislation through the Senate removed concerns that minor elements might delay the FASEA transition and the establishment of the Single Disciplinary Body.

The Financial Planning Association (FPA) was fast out of the blocks in welcoming the passage of the bill, with outgoing FPA chief executive, Dante De Gori suggesting it would deliver stability after eight years of constant regulatory change.

“Financial planners now have the opportunity to focus on their clients and on the challenge of providing financial advice to more Australians without the distraction of constant regulatory change,” he said.

“The Bill delivers a number of important measures, including a clear disciplinary process for the financial advice profession, regulatory efficiency through the removal of TPB as an advice regulator, the winding up of FASEA and the transfer of responsibilities of FASEA to Treasury and ASIC. These changes will streamline regulation, ultimately reducing costs to the profession and consumers.”

De Gori’s response noted that the bill was the last major recommendation from the Hayne Royal Commission related to the provision of financial advice.

“The past two years has been another period of significant reform that has overhauled the regulation and practice of financial advice in Australia. Whilst this legislation now provides a level of clarity as to who regulates financial planners, there are still outstanding issues that need to be addressed through regulations,” he said.

“The FPA will continue to work through these regulations and engage with members and stakeholders to ensure constructive input into the implementation of the reforms, as the Treasury consults on the operation of the FSCP panels at ASIC.”