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Monday 28 February 2022

22-033MR ASIC consults on Financial Services and Credit Panel regulatory guidance

ASIC has released Consultation Paper 359 Update to RG 263 Financial Services and Credit Panel (CP 359) seeking feedback on our proposed updates to Regulatory Guide 263 Financial Services and Credit Panel (RG 263). These updates reflect changes to the Financial Services and Credit Panel (FSCP) under the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 (Better Advice Act).

The Better Advice Act granted the FSCP its own legislative functions and powers to address a range of misconduct by, and circumstances relating to, financial advisers, see 21-363MR for more information.

CP 359 is seeking feedback on ASIC’s proposed approach to:

  • determining when to convene a sitting panel of the FSCP,
  • generally hold hearings of sitting panels using technology, and
  • publicising decisions of sitting panels.

ASIC encourages comments from industry and other interested stakeholders on its proposed approach to setting principles and processes relating to the FSCP. Comments should be sent by 5 pm AEST on Monday 28 March 2022 to FSCP.submissions@asic.gov.au

Download the consultation paper below to find out more.

Download

CP 359 Update to RG 263 Financial Services and Credit Panel

Draft RG 263 Financial Services and Credit Panel (Draft RG 263)

Background

In December 2020, the Government announced that it would expand the operation of the FSCP to give effect to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Financial Services Royal Commission), which called for a single, central disciplinary body to be established for financial advisers.

The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 (Better Advice Act) gives effect to this recommendation by giving the FSCP its own legislative functions and powers to address a range of misconduct by, and circumstances relating to, financial advisers.

The new FSCP replaces the panel of external delegates established by ASIC in 2017 to make administrative decisions on financial services and credit matters (superseded FSCP). The superseded FSCP ceased to operate from 1 July 2021, in anticipation of the reforms in the Better Advice Act.

The powers of the FSCP under the Better Advice Act include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ASIC. An FSCP sitting panel may also: suspend or cancel a financial adviser’s registration; issue infringement notices in specified circumstances; recommend that ASIC commence civil penalty proceedings; and enter into enforceable undertakings with financial advisers.

Additional resources

Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021

Financial Sector Reform Amendment (Hayne Royal Commission Response—Better Advice) Regulations 2021

Financial Services and Credit Panel

Better Advice Act broadens ASIC’s regulatory responsibilities (2 November 2021)

21-363MR Operation of the Financial Services and Credit Panel (22 December 2021)

RG 8 Hearings practice manual

RG 263 Financial Services and Credit Panel (current version)

RG 98 ASIC’s powers to suspend, cancel and vary AFS licences and make banning orders

Information Sheet 151 ASIC’s approach to enforcement

Information Sheet 152 Public comment on ASIC’s regulatory activities (INFO 152)

Information Sheet 250 Giving AFS and credit licensees information about their representatives

Last updated: 28/02/2022 03:04