Advisers for Financial Advisers – New Professional Standard Requirements

On 15 March 2017, the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 commenced and incorporated several measures into the Corporations Act 2001 to raise the education, training and ethical standards of financial advisers that provide personal advice to retail clients on more complex financial products.

From 1 January 2019, only Relevant Providers who meet the Relevant Standards can call themselves a “financial adviser” or “financial planner” or use similar words to provide financial advice services.

There is now a new section on the Australian Securities and Investments Commission (ASIC) website to help financial advisers navigate through the new professional standards requirements.

The requirements are aimed at lifting the education, training and ethical standards in the financial advice sector so relevant providers can be prepared for the changes that will become effective from January next year.