ASIC outlines AFSL guidance on qualification checks
ASIC has provided guidance to help licensees assess their advisers’ qualifications as it undergoes a crackdown on FAR reporting.
These will give licensees greater confidence to determine whether a person has met the relevant education and training standards required under the Corporations Act – a bachelor degree or higher degree, or qualification approved by the Minister for Financial Services, Stephen Jones.
To assist with cases where the qualifications may be hard to assess, it has provided extra examples which cover scenarios such as when a person has an approved degree, an approved degree requiring a bridging unit, and where an existing provider does not have an approved degree and are available on the website.
Existing advisers need only to demonstrate they have approved qualifications that are equivalent to an approved degree.
It is up to the licensee to confirm that an adviser’s degree or qualification is approved by assessing their final academic transcript of the completed qualification. This must match exactly what is listed in the Schedule 1 of Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021, including the course code.
What Australian Financial Services Licensees (ASFLs) should check for:
- That the education provider is listed in Schedule 1 of the Determination.
- The name of the degree or qualification and course code on the academic transcript exactly matches the Determination.
- If the approval of the degree or qualification in Schedule 1 of the Determination is subject to a condition that a person commenced their studies on or after or within certain dates, the final academic transcript issued by the provider of the approved degree or qualification must show that this condition has been met.
- The final academic transcript(s) should also show that an Ethics for Professional Advisers bridging unit has been completed, unless the Determination specifies that it is not required for the relevant degree or qualification.
- If the approval of the degree or qualification in Schedule 1 of the Determination is subject to other conditions, the final academic transcript issued by the provider of the approved degree or qualification must demonstrate that those conditions have been met.
AFSLs must update the Financial Advisers Register via ASIC Connect when a financial adviser has completed any qualifications and training relevant to the provision of financial services, including any approved qualifications.
Last month, ASIC began a compliance program to ensure that AFSLs have the correct details registered for their advisers on the Financial Adviser Register. Enforcement action will be considered by the corporate regulator for non-compliance.
The regulator said this “will remain a key focus” until 1 January 2026.
“It is a serious offence to knowingly provide false or misleading information to ASIC or to fail to take reasonable steps to ensure that the information provided to ASIC is true and correct. It is also an offence to fail to update the Financial Advisers Register within 30 business days of a financial adviser’s details changing,” ASIC said.
AUTHOR
Laura Dew
Recommended for you
The number of Australian high-net-worth individuals has grown by nearly 9 per cent from 2023, according to Praemium and Investment Trends, spelling positive news for financial advisers.
The financial planning software and platform has reported double-digit uplift across the group in FY24, as it focuses on inorganic growth through strategic acquisitions in the year ahead.
The Financial Advice Association Australia has written to every member of Parliament to press the case for a public inquiry into the Dixon Advisory collapse and the CSLR.
BT’s Bryan Ashenden has encouraged advisers to remain aware of the Financial Services and Credit Panel’s four latest determinations against relevant providers to avoid running into the same issues.
