The financial advice industry is to face further scrutiny, with two new Senate inquiries launched last week.

The first inquiry will examine the recent bill amending the Future of Financial Advice (FOFA) legislation. Submissions to the Economics Legislation Committee close on Wednesday and its report is due on September 30.

The committee will be chaired by Liberal senator Sean Edwards, with Labor’s Sam Dastyari as Deputy Chairman.

Other members include David Bushby (Liberal), Matthew Canavan (Nationals), Chris Ketter (Labor) and Nick Xenophon (independent).

The second inquiry will be conducted by the Senate Economics References Committee.

Submissions close on December 5, with a report to be delivered by next July.

It will address the FOFA changes; the role of regulatory agencies in preventing unethical and misleading financial advice; compensation mechanisms for bad advice; a centralised register of advisers that have breached laws or professional standards; companies’ responses to misconduct; and regulatory reforms to prevent misconduct.

A spokesman for Senator Dastyari told insuranceNEWS.com.au the inquiry will provide “continuous scrutiny to make sure all the things the Government, banks and the Australian Securities and Investments Commission have promised are kept. We are not going to allow the banks to issue hollow promises.”

He says the inquiry has cross-party support in the Senate.

It will be chaired by Senator Dastyari, with Senator Edwards as his deputy. Committee members include  Kim Carr (Labor) and senators Canavan, Ketter and Xenophon.