Daily BulletinHoliday Centre

The Conversation

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra

The large banks and AMP will be required to fund the establishment of a new independent body to oversee the professional standing of the much-criticised financial services industry, the government has announced.

The chairman and directors of the body, a Commonwealth company, will be appointed by the government, which will develop an ongoing industry funding model for it.

But the new professional standards regime for the industry will not start until 2019 and will take until 2024 to be fully operational.

The latest moves to boost the industry’s professional standards have been announced by the Minister for Financial Services and Revenue Kelly O'Dwyer ahead of an Australian Securities and Investments Commission (ASIC) report that further documents malpractice by the banks and AMP. The Australian Financial Review reports that it reveals they “have been shortchanging tens of thousands of customers tens of millions of dollars by charging them for services they didn’t receive”.

O'Dwyer foreshadowed action on professional standards in April but it fell by the wayside with the election. Given Labor’s urging of a royal commission into the banks, which has community support, the pressure on the government to respond has intensified.

O'Dwyer said legislation would be introduced into parliament this year to mandate professional standards for advisers.

They will include compulsory educational requirements for both new and existing advisers; supervision requirements for new advisers; a code of ethics for the industry; an exam that will be a common benchmark across the industry; and ongoing professional development.

The new standards regime will not commence until January 1 2019, and existing advisers will have until January 2021 to pass the new exam and until January 1 2024 to reach degree-equivalent status.

The standards body will develop and set the industry exam as well as the ethics code and determine the education and development requirements for both new and existing advisers.

Professional associations and other independent third party monitoring bodies will develop compliance schemes to monitor and enforce advisers’ adherence to the code. These compliance schemes will be approved by ASIC.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/slow-start-to-new-standards-requirements-for-financial-advisers-67151

The Conversation


Second Draft - Protecting religious freedom

PROTECTING RELIGIOUS FREEDOM REMAINS HIGH PRIORITY FOR GOVERNMENT   Our Government is committed to protecting every Australian from discrimination.   Today, we have released a second exposure ...

Scott Morrison - avatar Scott Morrison

Keeping Australians safe at airports

The Morrison Government is increasing counter-terrorism measures across nine airports by boosting the Australian Federal Police’s capability to disrupt and deter high-risk-incidents.   Prime Min...

Scott Morrison - avatar Scott Morrison

Scott Morrison on Medivac

PRIME MINISTER: The Australian public are in no doubt about our Government’s commitment to strong borders. Our Government has always been consistent. The Liberal and National parties have always b...

Scott Morrison - avatar Scott Morrison

Business News

Seeds of Change Accelerator

Food startups graduate from Accelerator transformed In May 2019, six of Australia’s most exciting new food-based startups were selected to take part in Mars Food Australia’s inaugural Seeds of Chan...

Media Release - avatar Media Release

Australian Government Invest In Small Business Owners

Turbo-Traction Lab Program Helps Aussie Entrepreneurs Grow Their Businesses Queensland, AU (December, 11 2019) - The Australian Federal Government is helping Aussie small business owners and entr...

Elize Hattin - avatar Elize Hattin

Tips for finding a good property manager

No one wants a property manager who is indifferent, doesn’t return your calls or fix problems with tenants. This is what property managers are supposed to do, and a bad one can unravel your investme...

News Company - avatar News Company


To sell travel packages partner with Holiday Centre - Advertisement

If you are a travel or accommodation provider allow the travel professionals at HolidayCentre.com market your products.. With a business name like Holiday Centre, you can be sure that they will delive...

Holiday Centre - avatar Holiday Centre

6 travel tips you need to know before visiting Melbourne

People have always held Melbourne in high regard with it's numerous coffee stops, it's glorious art galleries, the food scene that can floor any curious palate. There's a unique multiculturalism i...

News Company - avatar News Company

Hertz DriveU

Hertz and Air France launch Hertz DriveU, a new high-quality, hassle-free airport transfer service Hertz DriveU “When you don’t want to drive!” The service is available at more than 300 airports...

Media Release - avatar Media Release