The Parliamentary Secretary to the Treasurer, Bernie Ripoll, has advised that the Government intends to introduce legislation into Parliament before 1 July this year concerning the definition of financial planner.
On 28 November 2012, the Minister for Financial Services released draft regulations that would replace the accountants’ exemption with a new form of limited licence. This would enable accountants and other licence holders to provide advice on self-managed super funds and superannuation, as well as “class of product” advice on a range of financial products. The consumer protection provisions of FoFA, such as the “best interests” duty, would also apply to the limited licence.
At the same time, the Minister also released draft amendments to the Corporations Act to ensure that only persons who are authorised to give personal financial advice to retail clients can represent themselves as a “financial adviser” or “financial planner”.
Mr Ripoll said the Government is currently considering responses to the draft legislative changes on the limited licensing arrangements and definition of financial planner, and intends to introduce legislation into Parliament before 1 July this year. [Note that the Corporations Amendment (Simple Corporate Bonds and Other Measures) Bill 2013 has been proposed for introduction to implement this.]
Source: Parliamentary Secretary’s speech at the Financial Advice in Super Symposium, 4 February 2013
[LTN 23, 5/2/13]
Limited Australian Financial Services Licence (AFSL) for accountants: draft regulations to be finalised soon
The Minister for Financial Services says the draft regs to replace the accountants’ exemption with a limited Australian financial services licence (AFSL) from 1 July 2013 will be finalised “shortly”. This follows consultation on the draft regs that were released In November 2012.
Mr Shorten said the new limited licence will enable accountants to provide a greater range of advice to clients than the current exemption. The greater range of advice will include advice in relation to establishing, and investment strategies of an SMSF; superannuation products more broadly as a product class (but not particular products); general insurance products broadly (but not particular products); and basic deposit products broadly (but not particular products).
In order to facilitate the transition of accountants to the new regime, the regulations will provide for “recognised accountants” (ie someone who is an ICAA, CPA or IPA member) with a streamlined licence application process between 1 July 2013 and 1 July 2016 and a lower level of licence application requirements. The Minister said “recognised accountants” would not have to demonstrate they have experience providing financial services to receive the limited licence. Licensees who receive an AFSL under this streamlined process must complete a knowledge update review within 3 years of the date on which the license is granted to maintain their licence.
Source: Minister for Financial Services address to ICAA lunch, Parramatta, 27 February 2013
[LTN 39, 27/2/13]
Draft regs for limited AFSL for accountants to be finalised in April
In a speech on Wed 27.2.2013 (see above), the Minister for Financial Services said the draft regulations to replace the accountants’ exemption with a limited Australian financial services licence (AFSL) from 1 July 2013 would be finalised “shortly”. Soon after his speech, Mr Shorten issued a Press Release stating the regulations would be finalised in April 2013.
Source: Minister for Financial Services press release No 011, 27 February 2013
[LTN 40, 28/2/13]