Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022

Administered by Department of the Treasury

Legislation au F2022L00990 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Assistant Treasurer and Minister for Financial Services

Corporations Act 2001

Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022

The Corporations Act 2001 (the Act) provides for the regulation of corporations, financial markets and products and services, including in relation to licensing, conduct, financial product advice and disclosure.

Part 7.6 of the Act provides for the licensing obligations of providers of financial services. Professional standards apply to financial advisers who provide personal advice on relevant financial products to retail clients and include having an approved qualification. Section 921B sets out the education and training standards for a person who is, or is to be, a relevant provider (financial planners and advisers). There are four standards that relevant providers must meet (collectively known as the education and training standards).

Paragraph 921C(1)(b) of the Act prohibits ASIC from granting a financial services licence to a person who has not met the education and training standards. Subsection 921C(2) also prohibits licensees and authorised representatives of licensees from authorising other persons to give personal advice to retail clients in relation to relevant financial products unless the other persons have met the education and training standards. These prohibitions have applied from 1 January 2019 (section 1546C).

The first education and training standard requires that a provider has completed an approved bachelor or higher degree, or equivalent qualification or a foreign qualification approved by the Minister.

Paragraph 921B(6)(a) of the Act provides that the Minister responsible for administering the Act may, by legislative instrument, approve bachelor or higher degrees, or equivalent qualifications, for relevant providers.

The Act specifies matters that the Minister must be satisfied of before approving a degree or other qualification. To approve domestic bachelor or higher degrees or equivalent qualifications, the Minister must be satisfied that this is necessary or desirable to ensure relevant providers are adequately trained and competent to provide personal advice to retail clients (section 921B(7) of the Act).

This instrument updates Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021 to add the Bachelor of Commerce (Financial Advising) provided by James Cook University, as a degree approved by the Minister that satisfies the first professional standard. This approval follows the Ministers assessment that approving the degree is necessary and desirable to ensure that relevant providers are adequately trained and competent to provide personal advice to retail clients in relation to relevant financial products.

Public consultation on this instrument was not undertaken as the instrument is minor and machinery in nature.

Details of the instrument are set out in Attachment A

The instrument is a legislative instrument for the purposes of the Legislation Act 2003. The instrument is subject to disallowance and sunsetting in accordance with the ordinary arrangements.

The instrument commenced on the day after the instrument is registered on the Federal Register of Legislation.

A statement of Compatibility with Human Rights is at Attachment B.

Regulation Impact Statement

The Office of Best Practice Regulation has confirmed that no Regulatory Impact Statement is needed for the instrument.

ATTACHMENT A

Details of the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022

Section 1 – Name of the Regulations

This instrument is the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022. All references are to the instrument unless otherwise stated.

This Amending Determination adds to the list of approved degrees in Schedule 1 to the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2021 (the Determination).

Section 2 – Commencement

This section provides that the whole of the instrument commences on the day the instrument is registered on the Federal Register of Legislation.

Section 3 – Authority

This section provides that the instrument is made under the Corporations Act 2001 (the Act).

Section 4 – Schedule

This section provides that each instrument that is specified in a Schedule to this instrument will be amended or repealed as set out in the applicable items in the Schedule, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 – Amendments Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022

Schedule 1 to the instrument adds the Bachelor of Commerce (Financial Advising) degree provided by James Cook University to the table of approved degrees, under paragraph 921B(6)(a) of the Act which provides that the Minister responsible for administering the Act may, by legislative instrument, approve bachelor or higher degrees, or equivalent qualifications, for relevant providers.

Item 2 amends Schedule 1 to the Determination to update the table of degrees and qualifications that satisfy the requirements in paragraph 921B(2)(a) of the Act.

The amendments insert a new item 29A into the table in Schedule 1 with the effect of adding the Bachelor of Commerce (Financial Advising) degree offered by James Cook University as the approved degree.

The approval is subject to the condition that the relevant provider commenced the program on or after 1 July 2022. Paragraph 6(2)(a) of the Determination does not apply to this qualification as it includes an ethics unit of study.

Item 1 amends the note at section 6 of the Determination to confirm that the Bachelor of Commerce (Financial Advising) provided by James Cook University, is an approved degree to which paragraph 6(2)(a) of the Determination does not apply. Paragraph 6(2)(a) of the Determination otherwise requires that the relevant provider (financial planners and financial advisers) complete an additional Ethics for Professional Advisers bridging unit. This requirement does not apply if the relevant item in Schedule 1 states that this paragraph 6(2)(a) does not apply.

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Part 7.6 of the Act provides for the licensing obligations of providers of financial services. Professional standards apply to financial advisers who provide personal advice on relevant financial products to retail clients and include having an approved qualification. Section 921B sets out the education and training standards for a person who is, or is to be, a relevant provider (financial planners and advisers). There are four standards that relevant providers must meet (collectively known as the education and training standards).

The first education and training standard requires that a provider has completed an approved bachelor or higher degree, or equivalent qualification or a foreign qualification approved by the Minister.

Paragraph 921B(6)(a) of the Act provides that the Minister responsible for administering the Act may, by legislative instrument, approve bachelor or higher degrees, or equivalent qualifications, for relevant providers.

This legislative instrument updates Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021 to add James Cook University: Bachelor or Commerce (Financial Advising) as a degree approved by the Minister that satisfies the first professional standard that relevant providers must meet, specifically, subsection 921B(2)(a) of the Act. This approval follows the Ministers assessment that approving the degree is necessary and desirable to ensure that relevant providers are adequately trained and competent to provide personal advice to retail clients in relation to relevant financial products.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022, enacted by the Australian government, amends the Corporations Act 2001 to update the list of approved degrees for financial service providers. This amendment was introduced to address the need for ensuring financial advisers have adequate qualifications and competencies to provide personal advice to retail clients. The determination was made under the authority of the Assistant Treasurer and Minister for Financial Services and is designed to enhance the professional standards of financial advisers by approving additional educational qualifications. Specifically, this amendment adds the Bachelor of Commerce (Financial Advising) degree provided by James Cook University to the list of approved degrees, subject to certain conditions such as the commencement date of the program. This legislative instrument is a minor update to the existing Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021, aimed at improving the regulatory framework for financial services. It ensures that financial advisers meet the necessary education and training standards required by the Corporations Act, thereby maintaining high professional standards in the financial services industry. Public consultation was deemed unnecessary for this minor amendment. The determination is subject to disallowance and sunsetting under the usual legislative processes.

Scope and Application

The Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022 applies to financial services providers, particularly those who offer personal advice on relevant financial products to retail clients, by setting the educational and training standards that these providers must meet under the Corporations Act 2001. This Act, administered at the Commonwealth level, regulates corporations, financial markets, and financial products and services. The Determination specifically amends the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021 to include the Bachelor of Commerce (Financial Advising) degree offered by James Cook University as an approved qualification for relevant providers. This approval is contingent on the provider having commenced the program on or after 1 July 2022. The Determination outlines the geographic reach of the Act, applying across Australia, as it is a Commonwealth instrument. The amendment does not introduce any exclusions, exemptions, or thresholds beyond what is already stipulated in the Act and the Determination. The application of this legislation is further extended through subordinate instruments as necessary to ensure compliance with professional standards for financial advice.

Key Provisions

The Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Amendment Determination 2022 primarily serves to update the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021 by adding a new approved degree that meets the education and training standards set out in the Corporations Act 2001 (the Act) for relevant financial services providers. Specifically, it adds the Bachelor of Commerce (Financial Advising) degree provided by James Cook University to the list of approved degrees under section 921B(6)(a) of the Act (paragraph 1). This addition aligns with the legislative requirement that the Minister responsible for administering the Act may approve degrees or qualifications that meet the necessary education and training standards for relevant providers (subsection 921B(6)(a)). Under the Act, relevant financial service providers must meet stringent professional standards to obtain and maintain their licenses. These standards include, but are not limited to, having an approved qualification. The amendment ensures that the Bachelor of Commerce (Financial Advising) degree offered by James Cook University is recognised as an approved qualification for relevant providers. This is contingent upon the condition that the relevant provider must have commenced the program on or after 1 July 2022. This approval is significant because it ensures that financial planners and advisers are adequately trained and competent to provide personal advice on relevant financial products to retail clients. The obligations imposed by the Act on the parties governed by it are stringent. Relevant providers must ensure they meet the approved education and training standards to be eligible for a financial services licence. This includes completing an approved degree or equivalent qualification or a foreign qualification approved by the Minister. Failure to meet these standards can result in prohibitions on granting a financial services licence, as outlined in section 921C(1)(b) and (2) of the Act. The Act also mandates that licensees and authorised representatives of licensees cannot authorise other persons to give personal advice to retail clients unless those individuals meet the approved education and training standards. This regulatory framework is designed to uphold the integrity and competence of financial service providers. In terms of penalties and consequences for non-compliance, the Act does not explicitly detail specific civil or criminal penalties for breaches of the education and training standards in the sections referenced. However, failure to comply with the licensing requirements and professional standards can lead to significant repercussions, including the revocation of a financial services licence. The Australian Securities and Investments Commission (ASIC) has the authority to enforce these standards, and non-compliance can result in legal action, fines, or other regulatory sanctions. The overarching goal is to ensure that all financial service providers are competent and capable of providing reliable and ethical advice to retail clients.

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Area of Law
Corporate Law & Governance
Financial Services Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Licensing & Registration
Compliance Obligations
Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.