Fail to apply standards 3 and 6 before the treasury review


The single disciplinary body should not consider any disciplinary action resulting from a possible violation of Standards 3 or 6, until the code of ethics has been reviewed by the Treasury, according to the Association of Financial Brokers and Advisors (SAFAA ).

In his brief to Parliament on the Financial Sector Reform (Hayne Royal Commission Response – Best Advice) Bill 2021, he said the code of conduct for the Financial Adviser Standards and Ethics Authority (FASEA) is expected to be reviewed by the Treasury when it becomes responsible for the function next year.

“SAFAA has previously expressed our concern that ASIC and the panel will be overwhelmed if all breaches of a financial services law are caught by the regime without a materiality threshold being applied to ensure that breaches minor and administrative be filtered or dealt with promptly, “It said.

“It is important that the system is not obstructed by minor, technical or accidental violations that would otherwise not be significant.

“The SAFAA welcomes the change in the bill which provides that ASIC is only to convene a panel in prescribed circumstances. We hope this will ensure that the panel will only deal with material issues. “

He also recommended:

  • Remove the requirement for additional education and training standards for tax (financial) advisers;
  • Find a solution allowing advisors who do not provide advice to retail clients and who were not registered with the Register of Financial Advisors (FAR) to continue to provide tax advice (financial advice) to wholesale clients;
  • The obligation to register a financial adviser must have existed for more than four years with the financial services licensee on whose behalf the adviser has been authorized to provide personal advice to retail clients and
  • Membership in a professional association must be kept as a domain on the FAR.

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