The Australian government will expand the operation of the Financial Services and Credit Panel (FSCP) within the Australian Securities and Investments Commission (Asic) to create the functions of a single disciplinary body for financial advisers.
The government also proposed that the standard-making functions of the Financial Adviser Standards and Ethics Authority (Fasea) will move to the treasury.
The remaining elements of Fasea’s legislative functions, including administering the adviser examination, will be incorporated into the FSCP’s expanded mandate.
Legislation implementing these reforms will be introduced into parliament in the first half of 2021.
Exams
Fasea said it “will work closely with treasury and Asic to ensure an orderly transition to the new regulatory framework.
“In the interim, Fasea continues to administer its functions under the Corporations Act including administering the adviser exam and approving bachelor or higher degrees and equivalent qualifications,” the body added.
“Fasea notes that the legislated timeframe for existing advisers to pass the Fasea exam by the end of 2021 has not changed and encourages advisers who have yet to pass the exam to continue their studies and sit the exam.
“Fasea has worked diligently to carry out its functions under the Corporations Act to provide a framework for lifting the ethical, education and training standards of advisers.”
