New Type of Financial Services Licence

The Commonwealth has announced a new form of financial advice licence which aims to increase the availability of services for Australian consumers.

The new limited Australia Financial Service Licence is designed to allow 10,000 accountants to become licensed to provide a greater level of financial advice. The newly licensed financial advisors, however, will be restricted to providing general advice and will not be able to recommend specific products.

This new licence, along with increasing the number of licensed financial advisors, will enable advice to be given to consumers on a broader range of financial issues.

The newly licensed financial advisors will be able to provide advice on basic deposit products, general and life insurance, securities, and simple managed investment schemes.

The Hon. Bill Shorten said that under the new licensing regime ‘there will be more options for consumers to access low-cost financial advice on important issues including insurance and superannuation needs’.

The transition to the new licence will begin on July 1 2013, and will be streamlined until 1 July 2016.

Find the Treasury media release here.