{"id":63821,"date":"2022-12-12T14:18:32","date_gmt":"2022-12-12T03:18:32","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=63821"},"modified":"2022-12-13T14:33:37","modified_gmt":"2022-12-13T03:33:37","slug":"law-reform-commission-should-prioritise-advice-regulations-fpa","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/12\/12\/law-reform-commission-should-prioritise-advice-regulations-fpa\/","title":{"rendered":"Law Reform Commission Should Prioritise Advice Regulations &#8211;\u00a0 FPA"},"content":{"rendered":"<p>The FPA is suggesting financial advice regulations are prioritised for transitioning to the Australian Law Reform Commission&#8217;s proposed structure of the legal requirements based on thematic rulebooks.<\/p>\n<p>It makes the suggestion in its latest submission to the ALRC&#8217;s <em>Review of the Legislative Framework for Corporations and Financial Services Regulation<\/em>.<\/p>\n<figure id=\"attachment_58852\" aria-describedby=\"caption-attachment-58852\" style=\"width: 149px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2021\/12\/Sarah-Abood-v2-e1639004204902.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-58852\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2021\/12\/Sarah-Abood-v2-e1639004204902.jpg\" alt=\"\" width=\"149\" height=\"179\" \/><\/a><figcaption id=\"caption-attachment-58852\" class=\"wp-caption-text\">Sarah Abood &#8230;The legal obligations placed on individual financial planners should be separated from the requirements that apply to AFS licensees and product providers.<\/figcaption><\/figure>\n<p>A statement from the association explains that the ALRC package of proposals aims to improve navigability of the law and remove duplication under a new legal hierarchy of:<\/p>\n<ul>\n<li>Principles-based legislation<\/li>\n<li>Scoping order \u2013 consolidated exclusions and exemptions<\/li>\n<li>Thematic rulebooks<\/li>\n<\/ul>\n<p>FPA Chief Executive Officer, <strong>Sarah Abood<\/strong>, says the proposal \u201c\u2026is in line with FPA\u2019s long-held position that the legal obligations placed on individual financial planning practitioners should be separated from the requirements that apply to AFS licensees and product providers.\u201d<\/p>\n<p>She adds that the ongoing dialogue between the ALRC, the FPA and the financial services sector more broadly, \u201c\u2026continues to be a constructive demonstration of the ALRC\u2019s willingness to understand the excessive burden created by the current regulatory framework on all users of the corporations and financial services laws.\u201d<\/p>\n<p>Abood states that the ALRC\u2019s Review complements the Quality of Advice Review led by Michelle Levy, \u201c\u2026with both reviews considering equally vital and distinct elements of the corporations and financial services laws applicable to the provision of financial advice.\u201d (See: <a href=\"https:\/\/riskinfo.com.au\/news\/2022\/11\/01\/retain-risk-commissions-qoa-review\/\" target=\"_blank\" rel=\"noopener\">Retain Risk Commissions &#8211; QoA Review<\/a>).<\/p>\n<blockquote><p>&#8230;financial planners are faced with regulatory duplication&#8230;<\/p><\/blockquote>\n<p>\u201cFinancial planners are faced with regulatory duplication created by both the structure of the legislative hierarchy and the obligations contained in the financial advice-related provisions. This significantly and negatively impacts the affordability and accessibility of financial advice for consumers.\u201d<\/p>\n<p>Abood notes that the Corporations Act contains duplicated requirements applying to the individual planner, either directly or via obligations placed on the licensee.<\/p>\n<p>She says that both the ALRC and QoA reviews highlight that duplications in the law exist on two levels:<\/p>\n<ul>\n<li>Unnecessary repetition of identical provisions such as those identified in Interim Report B<\/li>\n<li>Specific obligations placed on the same provider through multiple applications of \u2018like\u2019 obligations, such as the financial advice requirements on financial planners<\/li>\n<\/ul>\n<p>She says that this duplication &#8220;&#8230;is made worse, as the obligations placed on financial planners under the Corporations Act 2001 licensee obligations, and the Financial Planners and Advisers Code of Ethics 2019, are heavily influenced by the licensee and others who often then apply additional requirements to financial planners.\u201d<\/p>\n<blockquote><p>&#8230;the ALRC package of proposals is vital to the success of the recommendations of the QoA Review&#8230;<\/p><\/blockquote>\n<p>Abood says the ALRC package of proposals is vital to the success of the recommendations of the QoA Review.<\/p>\n<p>\u201cThe financial planning profession has continued to deal with the impact of this issue in all elements of operating financial advice businesses and providing advice to help clients under the requirements Chapter 7,\u201d she says.<\/p>\n<p>The FPA is \u201c\u2026keen to see the ALRC prioritising recommendations relating to financial advice in its Final Report to Government, and include its considerations for the implementation of its recommendations and proposed legislative hierarchy by Government, Parliament, and regulators,\u201d she adds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FPA is suggesting financial advice regulations are prioritised for transitioning to the Australian Law Reform Commission&#8217;s proposed structure of the legal requirements based on thematic rulebooks. It makes the suggestion in its latest submission to the ALRC&#8217;s Review of the Legislative Framework for Corporations and Financial Services Regulation. A statement from the association explains [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":63825,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8],"tags":[],"class_list":{"0":"post-63821","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-associations","8":"category-compliance-regulation"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/63821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=63821"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/63821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/63825"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=63821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=63821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=63821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}