The Corporations Amendment (Simple Corporate Bonds and Other Measures) Bill 2013 was introduced into the House Reps this on Wed 20.3.2013, to give effect to the Government’s proposal to restrict the use of the terms “financial planner” and “financial adviser” to support the FoFA reforms.
The Bill proposes to amend the Corporations Act 2001 to restrict the use of the terms “financial planner” and “financial adviser” (or any other “restricted word or expression” specified in the regulations, or of like import), unless a person is licensed to provide personal advice to retail clients on “designated financial products”.
Terms which would be considered to be “of like import” would be terms such as “financial planning adviser” and “financial advising agent”. The Government will also be given the power to make regulations prescribing other terms that a person must have an AFSL to use.
An individual acting in breach of these requirements will face penalties of up to 10 penalty units (ie id=”mce_marker”,700) for every day the contravention occurs (50 penalty units per day for corporations). The Minister for Financial Services said the measures will help to protect consumers from unlicensed persons (such as property spruikers) who might hold themselves out to be authorised financial advisers when they are not.
DATE OF EFFECT: The measures will commence on the later of 1 July 2013 (or the day after Assent).
Note that the Bill will also amend the Corporations Act to reduce regulatory burdens and barriers for offers of corporate bonds to retail investors. These measures will commence on a day to be fixed by proclamation (or 6 months after the Bill receives Assent).
[LTN 54, 20/3/13]