The AFA has confirmed the FASEA Extensions will receive bipartisan support when the legislation is next brought before the Senate.
This confirmation follows the announcement this week by the Government that it will extend the ban on conflicted remuneration to stamping fees* related to listed investment companies and trusts.
The issue of stamping fees on LICs and trusts formed the basis of the ‘unrelated’ amendment the Federal Opposition wanted to add to the FASEA Extension omnibus bill when it was brought before the Senate earlier this month (see: FASEA Extension Delay Likely).
Now that the issue of stamping fees on LICs and trusts has effectively been resolved, the office of Shadow Financial Services Minister, Stehpen Jones, has affirmed to the AFA that Labor will now support the passage of the FASEA Extensions legislation through the Senate, which is next scheduled to sit on 10 June.
A statement released by AFA CEO, Phil Kewin, noted:
“The Treasurer’s announcement should ensure that the amendment to the Bill that was proposed by Labor, is no longer required. We have confirmed with the Office of Stephen Jones, the Shadow Minister for Financial Services, that the amendment will be withdrawn, and therefore failing any other unforeseen circumstances, the Bill should now pass without issue when the Parliament returns…”
…the Bill should now pass without issue
News of bipartisan support for the FASEA Extensions through the Senate was also reported by Riskinfo in April this year (see: AFA Reports Bipartisan Support…), but the last-minute tabling of the LIC stamping fee amendment by the Opposition meant voting on the Bill was delayed.
As previously reported, once the extensions have been legislated, advisers who were registered on ASIC’s Financial Adviser Register on 1 January 2019 will be required to:
- Complete the FASEA-approved adviser exam by 1 January 2022
- Meet FASEA’s minimum qualification requirements by 1 January 2026
Previously, advisers were only given until 1 January 2021 to pass the exam and until 1 January 2024 to meet the minimum education standards. This means advisers have one extra year to pass the exam and two extra years to complete their required studies.
* Stamping fees in the context of LICs and trusts is defined by the Government as an upfront one-off commission paid to financial services licensees for their role in capital raisings associated with the initial public offerings of shares…