Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Act 2021 (115 of 2021)

Schedule 1   Initial amendments

Part 1   Main amendments

Corporations Act 2001

43   After section 921B

Insert:

921BA Relevant providers to meet education and training standards

Qualifications

(1) A relevant provider must meet the education and training standard in subsection 921B(2).

Exam

(2) A relevant provider must meet the education and training standard in subsection 921B(3).

Work and training

(3) A relevant provider must either:

(a) meet the education and training standard in subsection 921B(4); or

(b) be undertaking work and training in accordance with that subsection.

Continuing professional development

(4) A relevant provider must comply with subsection 921B(5):

(a) in the case of a relevant provider who is a financial services licensee - during the licensee's CPD year; or

(b) in the case of a relevant provider who is authorised to provide personal advice to retail clients, on behalf of a financial services licensee, in relation to relevant financial products - during the licensee's CPD year.

Note: Section 922HB requires a notice to be given at the end of a financial services licensee's CPD year if a relevant provider has not complied with this subsection during that year.

Civil liability

(5) A person contravenes this subsection if the person contravenes subsection (1), (2), (3) or (4).

Note 1: This subsection is a restricted civil penalty provision (see sections 921Q and 1317E).

Note 2: ASIC or a Financial Services and Credit Panel may take certain other action against a relevant provider who contravenes subsection (1), (2), (3) or (4) (see Division 8B).

Note 3: Exemptions apply in relation to certain relevant providers (see section 921BC).

921BB Additional requirements for relevant providers who provide tax (financial) advice services

(1) The Minister may, by legislative instrument, determine any or all of the following requirements for a person who provides, or is to provide, a tax (financial) advice service:

(a) a requirement that the person has completed one or more specified bachelor or higher degrees;

(b) a requirement that the person has completed one or more specified qualifications;

(c) a requirement that the person has completed one or more specified courses;

(d) a requirement that the person has undertaken specified work and training;

(e) a requirement for continuing professional development in relation to the CPD year of a financial services licensee or any other period determined by the Minister.

(2) Before exercising the power in subsection (1), the Minister must be satisfied that doing so is necessary or desirable to ensure that relevant providers are adequately trained and competent to provide tax (financial) advice services.

Continuing professional development

(3) If a determination in force under subsection (1) sets out a requirement mentioned in paragraph (1)(e), a relevant provider who provides tax (financial) advice services must comply with that requirement:

(a) in the case of a relevant provider who is a financial services licensee - during the licensee's CPD year; or

(b) in the case of a relevant provider who is authorised to provide personal advice to retail clients, on behalf of a financial services licensee, in relation to relevant financial products - during the licensee's CPD year.

Note: Section 922HB requires a notice to be given at the end of a financial services licensee's CPD year if a relevant provider has not complied with this subsection during that year.

Civil liability

(4) A person contravenes this subsection if the person contravenes subsection (3).

Note 1: This subsection is a restricted civil penalty provision (see sections 921Q and 1317E).

Note 2: ASIC or a Financial Services and Credit Panel may take certain other action against a relevant provider who contravenes subsection (3) (see Division 8B).

Note 3: Exemptions apply in relation to certain relevant providers (see section 921BC).

921BC Exemptions for certain relevant providers

Time-sharing schemes

(1) Sections 921BA and 921BB do not apply to a relevant provider if the only relevant financial product in relation to which the relevant provider provides personal advice to retail clients is a time-sharing scheme.

Provisional relevant providers

(2) The CPD provisions do not apply to provisional relevant providers.