The Minister for Financial Services, Bill Shorten, said the amendments would make it "an offence for anyone to call themselves a financial planner or financial adviser, unless they are appropriately authorised under the Australian financial services licensing regime".
"These amendments deliver on my earlier commitment. Schedule 2 of the Bill will commence on 1 July 2013 (or after Royal Assent, if that occurs later), concurrently with the Future of Financial Advice reforms," said Shorten.
He added that individuals and companies acting in breach of these requirements would face penalties for every day the contravention occurs.
The tabling of the legislation was welcomed by the Financial Planning Association (FPA), which has promoted the move to legislate the terms.
FPA chief executive Mark Rantall said: “This is an historic and significant achievement for the financial planning profession in Australia. The tabling of the Bill is the commencement of the Parliamentary process to enshrine the terms in law.
The Bill must be debated and voted on by the members of the House of Representatives. Assuming the Bill is not referred to a House of Representatives committee or opposed by MPs, it will then proceed to the Senate for debate and vote by all Senators."
The FPA stated that it was “hopeful of a speedy progression through Parliament, however this process can take time”.
In August 2011, Australia was the first country in the world to introduce RDR-style regulations, with its Future of Financial Advice Act which involved a fee-based regime replacing commissions and an opt-in feature which requires the adviser to send a renewal notice every year.
