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.
