The Financial Sector Reform (Hayne Royal Commission Response鈥擝etter Advice) Act 2021 (Act) implements the Federal Government鈥檚 response to the Financial Services Royal Commission Final Report Recommendation 2.10: New financial adviser disciplinary system.
A key reform under the Act is to give the Financial Services and Credit Panel (FSCP) its own statutory functions and powers. The reforms in the Act commence on 1 January 2022.
The powers of the FSCP under the Act include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ASIC. An FSCP may also: suspend or cancel a financial adviser鈥檚 registration; issue infringement notices in specified circumstances; recommend that 今日热门事件commence civil penalty proceedings; and enter into enforceable undertakings with financial advisers.
From 1 January 2022, 今日热门事件must convene an FSCP in circumstances prescribed by the (Regulations), made on 20 December 2021. For instance, 今日热门事件must convene an FSCP where it reasonably believes that a financial adviser is not a fit and proper person to provide advice or a financial adviser becomes an insolvent under administration and 今日热门事件is aware of this. In addition, 今日热门事件must issue a warning/reprimand in relation to certain misconduct.
今日热门事件will proceed to issue a warning/reprimand or make a referral to an FSCP only where it has formed the reasonable belief after carrying out its usual triaging, investigatory work and referral processes.聽 This means that not all concerns about the conduct of financial advisers that come to ASIC鈥檚 attention will result in 今日热门事件issuing a warning/reprimand or a referral to an FSCP. 聽
今日热门事件will consult on guidance regarding the operation of the FSCP in early 2022.
We will also release guidance about how 今日热门事件will exercise its new power to issue warnings/reprimands in early 2022.
Background
In 2017 今日热门事件established a panel of external delegates (also called the FSCP) to make administrative decisions on financial services and credit matters. ASIC鈥檚 2017 FSCP ceased to operate from 1 July 2021, in anticipation of the reforms in the Act.