Recommendation 1
2.24 The committee recommends that the term 'general
advice' in the Corporations Act 2001 be replaced with the term 'product
sales information' to better reflect the nature of that information.
Recommendation 2
2.27 The committee recommends that the term 'personal
advice' in the Corporations Act 2001 be replaced with 'financial advice'
to better reflect the nature of that advice.
Recommendation 3
2.28 The committee recommends that to provide
'financial advice' an individual must be registered as a financial adviser.
Recommendation 4
2.44 The committee recommends that the government should bring
forward legislation to protect the titles 'financial adviser' and 'financial
planner' and require that to be eligible to use the title 'financial adviser',
an individual must be registered as a financial adviser.
Recommendation 5
2.57
The committee recommends that the register of financial advisers:
- include the information fields detailed in the government's
announcement of the register on 24 October 2014;
- have a unique identifier that follows every individual adviser
throughout their career;
- only list financial advisers on the register when a
professional association (which has been approved by the Professional Standards
Councils) advises that the adviser has completed the requirements of the Finance
Professionals’ Education Council approved professional year and passed the
registration exam;
- record any higher qualification awarded by a professional body
to the adviser;
- annotate any censure or limitation placed on a financial
adviser by a professional body, Australian Securities and Investments
Commission or Australian Financial Service Licence holder; and
- highlight that an adviser is no longer authorised to provide
financial advice if the adviser has their membership of the nominated
professional body suspended or revoked.
Recommendation 6
2.81 The committee recommends that the government
consider proposals to increase fees for organisational licensees to reflect the
scale of their financial advice operations, in the context of a broader review
of ASIC's fees and charges.
Recommendation 7
3.42
The committee recommends that:
- the mandatory minimum educational standard for financial
advisers should be increased to a degree qualification at Australian
Qualification Framework level seven; and
- a Finance Professionals' Education Council should set the core
and sector specific requirements for Australian Qualifications Framework level
seven courses.
Recommendation 8
3.60
The committee recommends that ASIC should only list a financial adviser
on the register when they have:
- satisfactorily completed a structured professional year and
passed the assessed components; and
- passed a registration exam set by the Finance Professionals'
Education Council administered by an independent invigilator.
Recommendation 9
3.76 The committee recommends that the government
require mandatory ongoing professional development for financial advisers that:
- is set by their professional association in accordance with
Professional Standards Councils requirements; and
- achieves a level of cross industry standardisation recommended
by the Finance Professionals' Education Council.
Recommendation 10
3.97 The committee recommends that the professional
associations establish an independent Finance Professionals' Education Council
that:
- is controlled and funded by professional associations which
have been approved by the Professional Standards Councils;
- comprises a representative from each professional association
(which has been approved by the Professional Standards Councils), an agreed
number of academics, at least one consumer advocate, preferably two who
represent different sectors and an ethicist;
- receives advice from ASIC about local and international trends
and best practices to inform ongoing curriculum review;
- sets curriculum requirements at the Australian Qualifications
Framework level seven standard for core subjects and sector specific subjects
(e.g. Self-Managed Superannuation Fund services, financial advice, insurance/risk
or markets);
- develops a standardised framework and standard for the
graduate professional year to be administered by professional associations;
- develops and administers through an external, independent
invigilator a registration exam at the end of the professional year; and
- establishes and maintains the professional pathway for
financial advisers including recognised prior learning provisions and
continuing professional development.
Recommendation 11
4.33 The committee recommends that professional
associations representing individuals in the financial services industry
be required to establish codes of ethics that are compliant with the
requirements of a Professional Standards Scheme and that are approved by the
Professional Standards Council.
Recommendation 12
4.53 The committee recommends that financial sector
professional associations that wish to have representation on the Finance
Professionals' Education Council and to be able to make recommendations to ASIC
regarding the registration of financial advisers, should be required to
establish Professional Standards Schemes under the Professional Standards
Councils, within three years.
Recommendation 13
4.56 The committee recommends that any individual
wishing to provide financial advice be required to be a member of a
professional body that is operating under a Professional Standards Scheme
approved by the Professional Standards Councils and to meet their educational,
professional year and registration exam requirements.
Recommendation 14
4.65 The committee recommends that government require
implementation of the recommendations in accordance with the transitional
schedule outlined in the table below.
Transitional arrangement
and timeframes
|
Date
|
Provisional registration
(available to existing financial advisers from the implementation of the
proposed government register until 1 Jan 2019 to address the goal of
transparency)
|
Mar 2015
|
Finance Professionals’
Education Council established
|
1 Jul 2015
|
FPEC releases AQF-7
education standards for core and professional stream subjects
|
Jun 2016
|
Establishment of codes of ethics
compliant with Professional Standards Scheme guidelines
|
Jul 2016
|
FPEC approved AQF-7 Courses
available to commence
|
Jan 2017
|
FPEC releases recognised
prior learning framework (dealing with existing advisers and undergraduates
who commence AQF-7 courses prior to Feb 2017)
|
Jul 2016
|
FPEC releases professional
year requirements including a recognised prior learning framework for existing
advisers
|
Jul 2016
|
Professional associations
operating under PSC Professional Standards Schemes
|
1 Jan 2017
|
Target date for existing
financial advisers to qualify for full registration
|
1 Jan 2018
|
Cut-off date for full
registration - provisional registration no longer available
|
1 Jan 2019
|
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