ob体育 has released Consultation Paper 359 Update to RG 263 Financial Services and Credit Panel (CP 359) seeking feedback on our proposed updates to Regulatory Guide 263 Financial Services and Credit Panel (RG 263). These updates reflect changes to the Financial Services and Credit Panel (FSCP) under the Financial Sector Reform (Hayne Royal Commission Response鈥擝etter Advice) Act 2021 (Better Advice Act).
The Better Advice Act granted the FSCP its own legislative functions and powers to address a range of misconduct by, and circumstances relating to, financial advisers, see 21-363MR for more information.
CP 359 is seeking feedback on ob体育鈥檚 proposed approach to:
- determining when to convene a sitting panel of the FSCP,
- generally hold hearings of sitting panels using technology, and
- publicising decisions of sitting panels.
ob体育 encourages comments from industry and other interested stakeholders on its proposed approach to setting principles and processes relating to the FSCP. Comments should be sent by 5 pm AEST on Monday 28 March 2022 to聽[email protected].听
Download the consultation paper below to find out more.
Download
CP 359 Update to RG 263 Financial Services and Credit Panel
Draft RG 263 Financial Services and Credit Panel (Draft RG 263)
Background
In December 2020, the Government announced that it would expand the operation of the FSCP to give effect to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Financial Services Royal Commission), which called for a single, central disciplinary body to be established for financial advisers.
The Financial Sector Reform (Hayne Royal Commission Response鈥擝etter Advice) Act 2021 (Better Advice Act) gives effect to this recommendation by giving the FSCP its own legislative functions and powers to address a range of misconduct by, and circumstances relating to, financial advisers.
The new FSCP replaces the panel of external delegates established by ob体育 in 2017 to make administrative decisions on financial services and credit matters (superseded FSCP). The superseded FSCP ceased to operate from 1 July 2021, in anticipation of the reforms in the Better Advice Act.
The powers of the FSCP under the Better Advice Act include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ob体育. An FSCP sitting panel may also: suspend or cancel a financial adviser鈥檚 registration; issue infringement notices in specified circumstances; recommend that ob体育 commence civil penalty proceedings; and enter into enforceable undertakings with financial advisers.
Additional resources
Financial Services and Credit Panel
Better Advice Act broadens ob体育鈥檚 regulatory responsibilities (2 November 2021)
21-363MR Operation of the Financial Services and Credit Panel (22 December 2021)
Hearings practice manual
RG 263 Financial Services and Credit Panel (current version)
ob体育鈥檚 powers to suspend, cancel and vary AFS licences and make banning orders
Information Sheet 151 ob体育鈥檚 approach to enforcement
Information Sheet 152 Public comment on ob体育鈥檚 regulatory activities (INFO 152)
Information Sheet 250 Giving AFS and credit licensees information about their representatives