The Government has introduced the Treasury Laws Amendment (2023 Measures No. 3) Bill 2023 into the House of Representatives.

If passed, the Bill will amend the Corporations Act to recognise the experience of existing financial advisers as equivalent to tertiary study.

UPDATE: Bill passed by House of Representatives on 1 August 2023.

UPDATE: Passed by Senate on 6 September 2023 and Royal Assent given on 20 September 2023.

The changes include:

• Experienced financial advisers who have been authorised to provide personal advice to a retail client for a minimum of 10 years and have a clean disciplinary record, are not required to complete an approved qualification (no more than eight prescribed units) by 1 January 2026 to meet the qualifications standard. They are still required to pass the exam and comply with continuing professional development requirements.
• New entrants with a domestic qualification may apply to the Minister for individual approval, where that person has completed an approved qualification, as determined by the Minister in the Approved Qualifications Determination, but not met all the conditions attached to that qualification.
• Financial advisers who are also registered tax agents are not required to meet the additional education requirements to be a qualified tax relevant provider.

The changes are in response to the following issues that have arisen:

• Existing financial advisers with extensive industry experience and a clean disciplinary record are leaving the industry.
• Potential new entrants are unable to meet the qualifications standard for technical reasons, despite meeting the substance of that requirement.
• For financial advisers who are also qualified tax agents, there is unnecessary duplication of qualification requirements to provide tax (financial) advice services to retail clients

ASIC extends date for financial adviser registration requirement

ASIC has announced it has extended the date by which financial advisers who provide personal advice to retail clients on relevant financial products must be registered to 1 October 2023.

After the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 has passed into law ASIC will issue regulatory guidance, conduct webinars, and open the registration portal to commence accepting applications for registration.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.