Development of the Financial Services Legislation Amendment Act
This page outlines the development of the new regulatory regime introduced by the Financial Services Legislation Amendment Act.
In March 2019, the Minister of Commerce and Consumer Affairs released a Supplementary Order Paper (SOP) to the Financial Services Legislation Amendment Bill. The SOP made a number of technical amendments to the Bill.
After considering the Bill, the Economic Development, Science and Innovation Select Committee in 2018 recommended some changes in response to concerns raised by submitters. These changes are summarised in the Committee’s commentary on the revised Bill:
A new regulatory regime
The Financial Services Legislation Amendment Bill had its third reading on 4 April 2019 and has now been passed into law. The legislation introduces a new regulatory regime for financial advice.
The new regime was developed following our review of the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
- A new financial advice regime: factsheet [PDF 438KB]
- Enforcement in the new financial advice regime [PDF 199KB]
- Liability in the new financial advice regime [PDF 113KB]
- Engaging individuals through ‘interposed persons’ to give financial advice [PDF 219KB]
- Can financial advisers be engaged by multiple financial advice providers? [PDF 203KB]
Consultation during the review
In March 2017 we consulted on an exposure draft of the amendment Bill and on proposed transitional arrangements. Following this consultation a number of changes were made to the Bill.
The review of the 2 Acts included formal consultations on an Issues paper and an Options paper:
Review of the FA Act and the FSP Act
We completed a statutory review of the Financial Advisers Act 2008 (FA Act) and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act) in 2016.
Below you can read our final report on the review, the terms of reference, Cabinet paper, and The Consumer Focus Group's report.