Financial advisers standards Bill

The Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 has been introduced into the House of Representatives. Background.

If pased the Bill will mandate professional standards for financial advisers. The Bill includes:
• Compulsory education for new and existing advisers;
• Supervision requirements for new advisers;
• An exam to establish a standardised benchmark across the industry;
• A code of ethics; and
• Ongoing professional development requirements.

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.

Separately the ASIC Corporations (Ongoing Fees Code) Instrument 2016/1129 approves the FPA Professional Ongoing Fees Code . This legislative instrument exempts a person who receives fees under an ongoing fee arrangement from giving the client a written renewal notice every two years which requires the client to opt-in to renew that agreement, on the conditions set out in the instrument.

The FPA code of practice will comence on 1 July 2017 for members with certified financial planner and associate financial planner designations.

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