Closure of FASEA welcome but only the start, says IPA

Mr Conway welcomed the recent round of reforms to the financial advice sector, including the Hayne royal commission recommendation to establish a single, disciplinary body.

He said the move “makes good regulatory sense” and that it “forms part of the reform agenda to streamline regulation in the longer term”.

“The Institute of Public Accountants continues to advocate for consumer access to competent and affordable financial advice, and accordingly we welcome the recent round of reforms to the sector,” Mr Conway said.

“It was not unexpected that this recommendation would involve rationalising the numerous regulators and standard setters which operate in the financial advice sector, and who are at times in conflict with each other. Winding up FASEA was always going to be an option.

“However, whilst the IPA welcomes reform and rationalisation, we urge the government to ensure that Treasury and ASIC are well supported and funded to take over the standard setting and administration functions currently performed by FASEA. Regulation is dependent on proper execution.”

Mr Conway said the IPA has been a long-time advocate of adequate funding for ASIC, which is even more critical given these additional functions.

“The IPA is also keen to work with ASIC and other stakeholders on ongoing reforms, including in response to ASIC’s consultation paper (CP 332), which seeks to improve consumer access to affordable advice by addressing the impediments which currently prevent this,” he said.

“We look forward to the next steps and working with Treasury and ASIC to reach the common goal of protecting the consumer interest through the provision of reliable and affordable advice in the future.”