The
Financial Services Legislation Amendment Bill has been improved
in the Select Committee process, although most of the changes are
minor.
Next up will be the consultation on the draft Code of Conduct,
which will need to deal effectively with the broad range of
regulated advice – not an easy task.
We take you through the revised Bill.
MAIN CHANGES
Definition of financial advice broadened
"Financial advice" now expressly includes
recommending, or giving an opinion on switching funds within a
managed investment scheme, and any financial planning services
prescribed in the regulations.
Licensing requirements won't apply to advising
wholesale clients
Licensing is now required solely for persons providing regulated
financial advice to retail clients. But certain duties will still
apply to advising wholesale clients, such as the duty to give
priority to the client's interests and to exercise care,
diligence and skill.
