The Minister for Revenue and Financial Services has announced the formation of the new Financial Adviser Standards and Ethics Authority (FASEA).
The FASEA will be responsible for governing the conduct of professionals in the financial advice sector, by setting mandatory educational and training requirements, developing and setting an industry exam, and creating a Code of Ethics that all advisers will be required to adhere to.
The new requirements will commence on 1 January 2019. From this date, new advisers will be required to hold a relevant degree before they are eligible to commence a supervision year and to sit the exam. Existing advisers will have two years, until 1 January 2021, to pass the exam and five years, until 1 January 2024, to reach a standard equivalent to a degree. The Code of Ethics will commence on 1 January 2020, with all advisers being required to adhere to the code from that day forward.
The FASEA board will primarily be responsible for:
1.ensuring the financial viability of the authority, and setting strategic objectives for the authority;
2.approving the education standards for financial advisers, the exam and the model code of ethics; and
3.appointing the CEO, and holding the CEO to account.