Financial advisers professional standards legislation passed

The Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 has been passed by both Houses of Parliament.

UPDATE: Royal Assent given on 22 February 2017. Commencement date proclaimed as 15 March 2017.

The Bill establishes the legal framework for minimum professional standards for financial advisers. The changes include:

  • Compulsory education requirements for both new and existing financial advisers;
  • Supervision requirements for new advisers;
  • A code of ethics for the industry;
  • An exam that will represent a common benchmark across the industry; and
  • An ongoing professional development component.

The new professional standards regime will commence on 1 January 2019. Existing advisers will have until 1 January 2021 to pass the new exam and until 1 January 2024 to reach degree-equivalent status.

The Corporations Legislation Amendment (Professional Standards of Financial Advisers) Regulations 2017 updates the information to be published on the Financial Advisers Register.

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