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ASIC Issues Important Guidance on Registration of Financial Advisers

Updated: Jan 24

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Australian Financial Services


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Australian Securities and Investments Commission (ASIC) has recently released crucial guidance on the registration of financial advisers. It is a new requirement that is separate to the pre-existing requirement for an AFS licensee to appoint a Relevant Provider to the Financial Advisers Register once they have been authorised.


The introduction of this additional registration requirement is in response to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.


Overview of Registration Requirements

From 1 February 2024, all relevant providers must be registered before providing personal advice to retail clients about relevant financial products. This includes relevant providers who only provide advice on time-sharing schemes (time-share advisers). This does not include provisional relevant providers who cannot be registered.


IMPORTANT: A relevant provider being listed as ‘current’ on the Financial Advisers Register does not mean they are registered. The requirement to register a relevant provider is different to the requirement to authorise and appoint a relevant provider to the Financial Advisers Register. From 1 February 2024, AFS licensees must authorise, appoint and register a relevant provider before the relevant provider can provide personal advice to retail clients. 

 

Guidance Publication

To assist financial advisers and Australian Financial Services (AFS) licensees in understanding and complying with this new requirement, ASIC has published Information Sheets 276 and 277. These documents provide detailed answers to common questions about financial adviser registration and offer guidance to AFS licensees on the declarations they must make when applying to register their Relevant Providers.


Information Sheet 276 FAQs: Registration of Relevant Providers (INFO 276) provides guidance to AFS licensees and Relevant Providers about registration requirement and process, registrations ceasing and multiple registrations.


Information Sheet 277 Registration of Relevant Providers: Guidance on Making Declarations (INFO 277) provides guidance to AFS licensees about the declarations they are required to make when applying to register their Relevant Providers.


Registration Process and Timeline

Registration Process and Timeline

Financial advisers and AFS licensees can apply to register their Relevant Providers using ASIC Connect. We strongly recommend early registration to ensure completion before the February 1, 2024 deadline. After this date, unregistered Relevant Providers may face legal consequences, including their associated AFS licensees.


Risk Advisory

Registration of relevant providers is taking part in two stages. Stage 1 requires AFS licensees to register the relevant providers they authorise (except provisional relevant providers) from 1 February 2024. Stage 2 will commence no later than 1 July 2026 and requires relevant providers to register themselves.


Financial advisers and AFS licensees can apply to register their Relevant Providers using ASIC Connect. We strongly recommend early registration to ensure completion before the 1 February 2024 deadline.


After this date, unregistered Relevant Providers may face legal consequences, including their associated AFS licensees.


Conclusion

The new registration requirements for financial advisers aim to elevate transparency and regulatory standards within the financial services industry. We encourage all AFS licensees to closely follow ASIC's latest guidance and complete the registration of their Relevant Providers within the specified timeframe to ensure compliance for themselves and their affiliated institutions.


We will continue to monitor developments and provide the latest industry updates.


 

Wis Australia


At Wis Australia, we are not just your accounting advisors but also professional navigators in financial management. We provide advanced consulting and accounting services, specializing in the intricate details of business record-keeping. Our professional team executes tasks efficiently, ensuring your financial data is meticulously organized. Choose Wis Australia for an outstanding financial partner and let us together lead your business to the pinnacle of success!


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