The Treasurer has announced that the Government is working towards the establishment of a new disciplinary system and single disciplinary body for financial advisers as recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

The Government plans to establish the new body in early 2021, subject to the passage of legislation which will be introduced into the Parliament in 2020.

The single disciplinary body will replace the role of code monitoring bodies which were due to be established by industry associations under professional standards reforms.

Compliance with the FASEA Code of Ethics is a requirement for all financial advisers from 1 January 2020.

Australian Financial Services Licensees will also be required to take reasonable steps to ensure their representatives comply with the code.