ASIC has taken action to provide certainty to Australian financial services (AFS) licensees that they will not be in breach of the law because their financial advisers were not able to register with an ASIC-approved compliance scheme by 1 January 2020, as originally required.
ASIC has granted a three-year exemption to all AFS licensees from the obligation in the Corporations Act 2001 to ensure that their financial advisers are covered by a compliance scheme and from the associated notification obligations.
ASIC’s action follows a Government announcement that it would accelerate the establishment of a single disciplinary body for financial advisers and the withdrawal of applications for ASIC approval of a compliance scheme. This disciplinary body will displace the role of compliance schemes in monitoring and enforcing the Financial Planners and Advisers Code of Ethics 2019 (the code).
Background
The code has been developed by the Financial Adviser Standards and Ethics Authority (FASEA). See FASEA’s website for information and guidance on the code.
For additional information see:
- ASIC media release 19-280MR ASIC to provide relief from financial adviser compliance scheme obligations
- Joint media release from the Treasurer and the Assistant Minister for Superannuation, Financial Services and Financial Technology of 11 October 2019: Taking action on the Banking, Superannuation & Financial Services Industry Royal Commission – Recommendation 2.10: New financial adviser disciplinary system
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