AFA acting CEO Phil Anderson

The Association of Financial Advisers has expressed concern over the scope to be policed by the proposed Single Disciplinary Body, noting that if the SDB is forced to monitor and investigate the minutiae of discretions across law, FASEA and its Code of Ethics, costs will blow out and trickle down to advisers.

In a submission to Treasury in response to the exposure draft legislation on the SDB, the AFA expressed “particular concern” that the bill’s exposure draft document will see the SDB looking at “the most minor and administrative matters”.

“This is as a result of the draft legislation suggesting that the SDB will look at all breaches of the law and breaches of the FASEA standards and Code of Ethics,” the AFA stated.

“This will mean that the SDB will be looking at a large number of matters, most of which are minor or administrative, like inadequate record-keeping on compliance with the Best Interests Duty Safe Harbour steps or errors or delays in the provision of Fee Disclosure Statements.”

The associated cost with this palette of work, the association says, will likely increase an already-high industry levy cost for advisers.

“As a direct result, we are very concerned about the cost of running this system, particularly in the context of the recent substantial increases in the ASIC Funding Levy,” the AFA added, noting that advisers are also due to be hit with a new ASIC registration fee.

One comment on “AFA: Sweating the small stuff too costly for the SDB”
  1. Avatar
    Jeremy Wright

    What the SDB will do, is what ASIC and all the Regulators do, which is to interpret the miasma of Regulation and make decisions on a course of action, that based on the current maze, will not be simple, it will be more of the same minefield of gray interpretation.

    Many of the displaced ASIC and other vested interest people who will no longer have the protection of unlimited Government funding in one direction, will simply change jobs to another Government funded entity, now called the SDB and continue as if nothing has changed.

    Based on the past performance of the Government and the current insane restriction of trade conditions that private Industry is a slave to now, then the merry go round will continue.

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