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House of Representatives

Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016

Explanatory Memorandum

(Circulated by authority of the Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP)


The following abbreviations and acronyms are used throughout this explanatory memorandum.

Abbreviation Definition
ASIC Australian Securities and Investments Commission
ASIC Act Australian Securities and Investments Commission Act 2001
Bill Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016
Body Standards body declared under new section 921X
Code Code of Ethics developed by the standards body
Corporations Act Corporations Act 2001
Corporations Regulations Corporations Regulations 2001
CPD Continuous professional development
CPD year Continuous professional development year
Criminal Code Criminal Code contained in the Criminal Code Act 1995
education standards Education and training standards
existing provider A person who is a:

relevant provider or provides personal advice in a foreign country to retail clients at any time between 1 January 2016 and 1 January 2019;
is not banned, disqualified or suspended in Australia, or prohibited under the law of the foreign country from providing advice on 1 January 2019; and
who has passed the prescribed exam before 1 January 2021.

FOFA Future of Financial Advice
FSI Financial System Inquiry
licensee Australian Financial Services Licensee
limited-service time-sharing adviser A relevant provider who does not provide personal advice on any relevant financial products apart from timeshare schemes and does not meet all of the education standards
PGPA Public Governance, Performance and Accountability Act 2013
PJC Parliamentary Joint Committee on Corporations and Financial Services
PJC Inquiry Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into proposals to lift the professional, ethical and education standards in the financial services industry
provisional relevant provider A relevant provider who meets the degree requirement and has passed the exam but is still undertaking their professional year and is subject to additional supervision requirements
Register Register of Relevant Providers established under new section 922Q of the Corporations Act
Register Regulations Provisions relating to the Register of Relevant Providers in Schedule 8D of the Corporations Regulations 2001, inserted by the Corporations Amendment (Register of Relevant Providers) Regulation 2015
relevant financial product A financial product other than a basic banking product, general insurance product, consumer credit insurance, or a combination of these products
relevant provider A natural person who is authorised to provide personal advice to retail clients in relation to relevant financial products
RG 146 ASIC's Regulatory Guide 146 Licensing: Training of financial product advisers
RIS Regulation Impact Statement
Scheme Compliance scheme under which compliance with the Code is monitored and enforced
TASA Tax Agent Services Act 2009
TPB Tax Practitioners Board

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