Single Disciplinary Body delayed up to 2 years

“Legislation to implement the single disciplinary body will … now be introduced at the end of next year.” says the Assistant Minister for superannuation, financial services & financial technology.

This means the force of the new legislation will not be in place for another 18-24 months.

IMPORTANT NOTE – AFSLs must CONTINUE to monitor & enforce Advisers’ adherence to the FASEA Code of Ethics, and systems & processes may need to be built, if only for a interim time period.

ASIC has issued five, broad points to assist Licensees in taking “reasonable steps” to execute their monitoring responsibilities. But they are general in nature, & point 5 refers directly to the SDB.

CHALLENGES – How will Licensees manage this given many are unsure about how to INTERPRET the Code of Ethics, let alone enforce it?

What does this mean, especially in terms of monitoring EACH PIECE OF ADVICE (SoA) for EACH INDIVIDUAL ADVISER against Standards 2, 3, 4, 5, 6, 7, & 9?

The Minister also argues Licensees are being too compliance focused.

The interesting aspect to this is not the delay itself, but rather the fact that AFSLs must now continue to shoulder the responsibility to ensure its Authorised Reps adhere to the FASEA Code of Ethics – this means AFSLs must “monitor and enforce” the Code for an indefinite period of time. ASIC has issued five, broad points to assist Licensees in taking “reasonable steps” to execute their monitoring responsibilities. This is not what Licensees should be doing given the SDB will eventually come in to force.

How will Licensees going to manage this given many of them are unsure about how to INTERPRET the Code of Ethics, let alone enforce it? What does this mean, especially in terms of monitoring EACH PIECE OF ADVICE (SoA) for EACH INDIVIDUAL ADVISER against Standards 2, 3, 4, 5, 6, 7, & 9?

Technology tools will be needed to help identify (monitor & manage) advice risks at the individual Adviser level. Traditional compliance frameworks may capture some of this, but much of it may be too late – post the advice being delivered.

Read the original LinkedIn post here https://www.linkedin.com/posts/joel-ronchi_single-disciplinary-body-delayed-activity-6704963193313345536-ar7G

Read the original article at https://www.ifa.com.au/news/28474-single-disciplinary-body-delayed 

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