Single Disciplinary Body

The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 put in place the new Single Disciplinary Body (SDB) within ASIC, extending the existing Financial Services and Credit Panel (FSCP). A FSCP may be convened to: 

The Single Disciplinary Body commenced on 1 January 2022, giving the FSCP its own statutory function and powers. The powers of the FSCP include: 

ASIC will act as the secretariat for the SDB, whilst the FSCP will be made up of members of the industry appointed by the relevant Minister and provide for a peer review mechanism. 

In certain circumstances, decisions of the Panel, will be posted on the planner’s registration on the FAR. (See RG263) 

Breaches referred to Single Disciplinary Body

The single disciplinary body may consider breaches or likely breaches that are reported under the breach reporting requirements, received through complaints handling mechanisms, or identified through an ASIC investigation.

The new breach reporting requirements include reporting breaches (or likely breaches) of the Code. Rather than capturing all breaches, failing to comply with the Code of Ethics is reportable to ASIC under the new breach reporting regime only if the breach is serious or the ‘deemed significant’ test applies. This is to reduce the number of minor breaches being reported.

A breach is serious if it results in:

Determining whether a breach results, or is likely to result, in material loss or damage to a client depends on the client’s circumstances, including their financial circumstances.

Any questions? 

We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any policy issues or concerns that affect you. 

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