Treasury wants to introduce more red tape to “clarify and strengthen the breach reporting regime for financial services licensees in the Corporations Act 2001”.
The new regulation red tape will come with civil penalties and infringement notices.
Submissions are due before 9 April 2021. The details can be found here: Breach Reporting Regulations | Treasury.gov.au
Some extracts from my submission:
More Regulations equals more costs to consumers. There are more than 60 ways to breach the laws of Australia when a Registered Financial Adviser gives just one piece of Advice.
Instead of adding more regulations, why not consign Chapter 7 of the Corporations Act to the history books and abolish the AFS Licensing system and replace both with a new system that the consumer can understand and legitimises Financial Planning as a profession.
Chapter 7 does not live up to community standards and expectations in modern Australia 2021 and should be replaced.
Chapter 7 caused the misconduct highlighted in the Royal Commission over many years and deserves to be replaced with a modern piece of legislation which recognises and appreciates the importance of personal financial advice and the registered financial advisers that give it.
My submission also included the steps to provide just one piece of financial advice without breaking the law. Since the last piece of legislation was passed by government, the number of steps are now more than 60.!
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