Super Alert – 14 February 2025: Scams Prevention Framework, Treasury and ASIC media releases on financial advice
Welcome to the weekly KHQ Super Alert. This week the new Scams Prevention Framework legislation passed Parliament. While it will not initially apply to superannuation funds, it is expected that the industry will be caught by the legislation in due course. Various media releases from Treasury and ASIC relating to financial advice were also published this week.
Parliament – Scams Prevention Bill passes Parliament
On 13 February 2025, the Scams Prevention Framework Bill 2025 (Cth) passed both Houses of Parliament. As referred to in our Super Alert of 15 November 2024, the Bill’s Explanatory Memorandum outlines that the Bill proposes ‘a legislative framework to prevent and respond to scams. The amendments introduce a framework with overarching principles and a multi-regulator framework, and enables sector codes to be made and an EDR scheme to be authorised’.
Some amendments were proposed by the Senate which were agreed to by the House of Representatives relating to the role of the regulators.
In an associated media release, the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP, together with the Minister for Communications, the Hon Michelle Rowland MP explained that ‘[i]nitially, the Government will designate banks, telcos, and social media companies under the Framework. These businesses will be subject to comprehensive and enforceable sector‑specific rules for what they must do to protect Australians’.
Click here and here for details.
Treasury – Consultation paper in relation to genetic testing in life insurance
On 12 February 2025, Treasury released a consultation paper seeking feedback in relation to the Government’s proposal to ‘ban the use of adverse predictive genetic testing results in life insurance’. The Government is seeking views about the ‘design issues for the measure’. As referred to in our Super Alert of 13 September 2024, this proposal was announced last year with the aim ‘to prevent discrimination based on adverse genetic testing’.
In an associated media release, the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP, noted that the introduction of this ban is ‘world leading’ and the reforms require ‘consideration of technical details of the legislation, which aren’t easily adapted from other jurisdictional laws’.
The consultation period closes on 12 March 2025.
Click here and here for details.
ASIC – Financial advice newsletter released
On 12 February 2025, ASIC released its ‘Financial advice update’ newsletter for the month of February. The purpose of the newsletter is to summarise all recently announced regulatory developments which affect financial advice.
Click here for details.
Treasury – Reforms in relation to financial adviser education
On 10 February 2025, Treasury published a fact sheet outlining the reforms proposed by the government to ‘education standards for financial advisers to increase the number of qualified professionals who can give safe and helpful advice’.
In an associated media release, the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP explained that ‘[t]he current education pathway is not sustainable’ due to the significant investment required for this ‘specialised area of study’. Accordingly, the Government is proposing to simplify the requirements.
In addition, the media release states that ‘the Government will no longer proceed with Stage 2 of the registration process for financial advisers established by the Better Advice Act. This stage would have required individual advisers to register annually with [ASIC] from 1 July 2026. Financial advisers are already registered by their authorising Australian Financial Services licensees under Stage 1. Not proceeding with Stage 2 removes unnecessary red tape on individual advisers’.
Click here and here for details.
ASIC – Speech in relation to financial advice
On 10 February 2025, ASIC published a speech delivered by one of its Commissioners, Alan Kirkland. The focus of the speech relates to financial advisers.
Mr Kirkland stated that ‘ASIC has observed some positive signs of improvement – but there continues to be too many examples where advice leads to poor, if not devastating, outcomes for consumers’. As a result, ‘‘misconduct exploiting superannuation savings’ and ‘unscrupulous property investment schemes’ have been selected as 2025 enforcement priorities’ by the regulator.
Click here for details.
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