The path has been cleared for advisers to get the extensions to FASEA’s transitional time frames they were promised after the government announced late on Thursday afternoon it will ban conflicted payments on Listed Investment Companies from July.
The proposal to ban so called stamping fees – one-off commissions paid to advisers for their role in capital raisings associated with the initial public offerings of shares in LICs – seemed to be the only stumbling block for a Bill containing the FASEA deadline extensions being introduced into the Senate where it is believed to have bipartisan support.
This stamping fee amendment was originally proposed to be attached to the Treasury Laws Amendment (2019 Measures No. 3) Bill 2019 containing the FASEA time frame extensions.
Now that the stamping fee exemption has been ruled on following a short consultation period ordered by Treasurer Josh Frydenberg, the Bill should be introduced at Senate’s next sitting in June, it is believed.
A furore erupted when the LIC stamping fee amendment was reattached to the Bill containing the FASEA extension last week. This amendment was originally attached late last year but removed during the Bill’s passage through the House of Representatives.
A spokesperson for Shadow Assistant Treasurer Stephen Jones, the Labor Minister who supported the stamping fee amendment, told Professional Planner his office had made clear all along the amendment would be reattached for the Senate to consider.
In August last year Senator Jane Hume (pictured), Assistant Minister for Superannuation, Financial Services and FinTech, announced the government would extend the transitional time frame for the approved degree or equivalent qualification by two years to 1 January 2026, and for the time frame for the approved exam requirement to be deferred by one year to 1 January 2022.
Sentaor Hume’s promise of relief came at a time when many advisers were considering whether juggling business and study to remain in the industry was worthwhile. These considerations, along with the views of senior executives at FASEA and ASIC will feature at the Licensee Summit Digital live streamed event on June 2 – you can see the agenda and purchase access to the event worth up to 3.75 CPD hours here.
Meanwhile, heads of ASIC, APRA and the RBA spoke about the challenging role regulators and policy makers have in the current crisis environment providing relief while still remaining tough on policing wrong doing and protecting consumers at a discussion hosted by FINSIA on Thursday.
ASIC chair James Shipton said the securities regulator will announce a revised set of strategic priorities for the next few months in coming weeks which will include new regulatory work and priorities in light of the crisis and risk to consumers.