Financial advisers will be governed by a new streamlined regulatory system under draft laws proposed by the Morrison government in response to the Hayne royal commission into financial system.
Financial Services Minister Jane Hume says the legislation will strengthen oversight of financial advisers while helping to reduce complexity and cost for advisers.
"This is part of the government's ongoing commitment to ensure Australians have access to affordable and high-quality advice," Senator Hume said in a statement on Monday.
It will expand the role of the Financial Services and Credit Panel (FSCP) that sits within the Australian Securities and Investments Commission.
"It proposes to create new penalties and sanctions to apply to financial advisers found to have breached their obligations and introduces a new annual registration system for financial advisers," the minister said.
The legislation will also include the introduction of a single disciplinary and registration system for financial advisers who also provide tax advice services.
It will remove the requirement for tax advisers to be registered with the Tax Practitioners Board and will ensure relevant tax experts are appointed to the FSCP to hear disciplinary matters that involve tax-related advice.
Senator Hume says this will provide welcome relief to tax advisers who are currently subject to duplicate regulation and oversight.
The legislation is now open for consultation, with submissions due by May 14.
