The federal government has revealed when the financial advice industry can expect the introduction of legislation that will establish a new single disciplinary body for the sector.
Speaking today at the Association of Financial Advisers national conference, Vision 2020, Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume told delegates: “Following consultation, we’re now working through the detail and we intend to introduce legislation [to establish a single disciplinary body] by mid-2021.”
Hume described the move as a significant step and one that is necessary to implement a key recommendation arising from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
“This will be a game changer. We want to make sure, and we have been listening really hard to what it is that [advisers] want out of a single disciplinary body system and, of course, what the community wants as well,” she said.
“This a huge opportunity. Now we want to make sure that there is far better alignment of the regulatory requirements placed on [advisers] and legislative requirements as well.
“We know that, at the moment, you have the corporations law, and then on top of that you’ve got a code of ethics, and then on top of that you’ve got the compliance that’s placed on you by your [licensees], and I think the combination of all of them makes it very difficult.”
According to Hume, the single disciplinary body will make it very clear what an adviser’s obligations are and will align the regulatory burdens financial advice practitioners are currently facing.
“We’re hoping the single disciplinary body will align some of the regulators [too] so there are fewer of them and [practitioners] have a very clear path as to what the performance standards and expectations are and that your peers will have a say,” she noted.
During the same speech, she announced legislation allowing the establishment of a forward-looking compensation scheme of last resort will also be introduced by mid-2021.