Wednesday, 4 August 2021
Financial Sector Reform (Hayne Royal Commission Response — Better Advice) Bill 2021; Second Reading
I would like to start by thanking those members who have contributed to this debate on the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021. The government is committed to implementing its response to the financial services royal commission and is delivering one of its commitments through this legislation. This bill implements recommendation 2.10, which recommends the establishment of a single disciplinary body for financial advisers and that all financial advisers who provide personal financial advice to retail clients be registered. The bill expands the role of the Financial Services and Credit Panel within ASIC to take on the role of the single disciplinary body and gives the panel new sanction powers.
Consistent with Commissioner Hayne's observations, the establishment of the single disciplinary body will ensure that appropriate disciplinary consequences are imposed and this disciplinary action extends beyond a financial adviser's role within a particular licensee. The bill also seeks to streamline the number of bodies involved in the oversight of financial advisers by transferring the functions that are currently undertaken by the Financial Adviser Standards and Ethics Authority to the minister responsible for the Corporations Act 2001 and ASIC. Finally, the bill provides that tax financial advisers will no longer be regulated by the Tax Practitioners Board and will instead be regulated only under the Corporations Act 2001. This is consistent with recommendation 7.1 from the independent review of the Tax Practitioners Board. I commend this bill to the House.