Bill
Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021
passed, as at 2021-10-28. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2021-06-24
- second reading — 2021-06-24
- second reading — 2021-08-04
- second reading — 2021-08-04
- third reading — 2021-08-04
- introduced — 2021-08-04
- second reading — 2021-08-04
- second reading — 2021-08-09
- second reading — 2021-10-21
- second reading — 2021-10-21
- committee — 2021-10-21
- third reading — 2021-10-21
- passed — 2021-10-21
- royal assent — 2021-10-28
Divisions
- Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Bill 2021 - Second Reading - Disagree with amendments — 2021-08-04, House of Representatives: affirmative, ayes 44, noes 35
- The majority voted against an amendment introduced by ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor), which means it failed. The amendment would have added the text below to the usual second reading motion. A [second reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) motion is "*that the bill be read a second time,*" which is parliamentary jargon for agreeing with the main idea of [the bill](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6740). ### Amendment text > *At the end of the motion, add ", but the Senate notes the Government has:* > > *(a) failed to effectively deliver professional standards reform in the financial advice sector;* > > *(b) been too slow to implement the findings of the Hayne Royal Commission;* > > *(c) established and then shut down the failed Financial Adviser Standards and Ethics Authority;* > > *(d) failed to adequately protect consumers; and* > > *(e) caused uncertainty and unnecessary costs for thousands of financial advisers across Australia".* — 2021-10-21, Senate: negative, ayes 20, noes 25
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2021-06-24.
This bill would change how financial advisers are regulated, partly in response to a royal commission's recommendation.
It would make the Financial Services and Credit Panel, part of the Australian Securities and Investments Commission (ASIC), the single body that disciplines financial advisers.
New penalties, a registration system and a transfer of functions from the Financial Adviser Standards and Ethics Authority (FASEA) to a minister and ASIC are included, plus a single system for advisers who give tax advice.
- Expand the Financial Services and Credit Panel's role so it handles all disciplinary matters for financial advisers.
- Create new penalties and sanctions for advisers who break obligations under the Corporations Act.
- Introduce a registration system for financial advisers.
- Move functions from FASEA to the minister responsible for the Corporations Act and to ASIC.
- Replace duplicate regulation with a single registration and disciplinary system for advisers who provide tax (financial) advice services.
Financial advisers who provide tax advice and the agencies that regulate them, including ASIC and the relevant minister.
Sources
em
billhome
frl act