Hume references central adviser disciplinary body

federal government Jane Hume financial services institute of australasia morrison government financial planning association FPA australian securities and investments commission ASIC Royal Commission Josh Frydenberg

5 September 2019
| By Mike |
image
image
expand image

The Government’s proposed financial adviser central disciplinary body has been directly referenced by the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume.

While the major financial advice bodies are still seeking details of the proposed new disciplinary structure, Hume used a speech to a Financial Services Institute of Australasia summit in Melbourne to canvass the disciplinary body as a central element of the Government’s approach to addressing adviser misconduct.

While backing the value of quality financial advice and referencing the important role advisers play, Hume said it was critical the industry was held to high standards and any misconduct eliminated.

“The Government is committed to ensuring Australia has a vibrant and well-respected financial advice industry. One that customers feel confident that the advice they get is the best advice for them,” she said.

“As such, the Morrison Government has increased the requirements for entities to investigate the full extent of financial adviser misconduct, introduced legislation to end grandfathering of conflicted remuneration and is establishing a new approach for disciplining financial advisers for misconduct through a central body.”

Hume’s comments come at the same time as the Financial Planning Association (FPA) and the other bodies making up a consortium to establish a Code Monitoring Authority have sought clarity about where the authority will sit in a landscape inhabited but not only the Australian Securities and Investments Commission (ASIC) and the proposed new central disciplinary body.

The central disciplinary body was recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and the Treasurer, Josh Frydenberg, outlined that both it and the Financial Adviser Standards and Ethics Authority would exist within the proposed new framework.

However, while financial advisers who sign up to the Code Monitoring Authority are expected to fund its operations, there has been no discussion around how the central disciplinary body would be funded and whether it would be separate from ASIC.

FPA chief executive, Dante De Gori, said the FPA was seeking clarity of the new regime in the context of the operations of a Code Monitoring Authority and any additional monetary imposts on members.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 21 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 19 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 21 hours ago