Commissioner takes final step, and issues stern warning

Commissioner for Financial Advisers David Mayhew says it is an important milestone for the implementation of the new regime.

"This confirms that Authorised Financial Advisers will be a reality from December 1. From that date advisers giving personalised investment advice to retail clients will be able to operate within the new regime designed to promote the sound and efficient delivery of financial advice and to encourage public confidence in the professionalism and integrity of advisers," he said. 

He also noted that from December 1 all financial advisers will be subject to the statutory duties to exercise care, diligence and skill and not to engage in misleading or deceptive conduct.

At the same time, the Securities Commission has approved the standard conditions for incorporation in the authorisation of AFAs.  Those conditions provide the framework for the regulatory relationship between the individual AFA and the Securities Commission, for example, in relation to reporting obligations.