Thousands of advisers risking career without new ASIC registration
Almost 6,000 financial advisers have just two weeks to register with ASIC if they wish to continue to provide advice.
Legislation introduced last year requires financial advisers to be registered to provide advice by 1 February 2024. This deadline has been extended three times from its original deadline in order to allow the Treasury Laws Amendment (2023 Measures No. 1) Bill to pass Parliament.
All advisers who were registered with the Tax Practitioners Board (TPB) as at 1 January 2022, and have not changed licensee since, are deemed to be registered. For all other advisers, their licensee needs to register them.
Despite the multiple extensions, ASIC data shows that of 11 January, nearly 6,000 advisers are still unregistered.
Financial Advice Association Australia chief executive, Sarah Abood, said: “While there have been a number of communications about this new obligation, we are aware that many licensee staff and advisers have been on leave recently and thus not yet attended to this matter.
“Completing this process by 1 February 2024 is essential in order for advisers to continue to practice. A lot is at stake.”
To check whether an adviser is registered, they can look up their adviser record on the Financial Adviser Register (FAR) and check their registration status. If this is showing ‘not registered’ then they need to immediately contact their licensee to confirm the process to complete registration.
This process includes a declaration for advisers that they are a fit and proper person.
The requirement was introduced by the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021, in response to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Earlier this week, Money Management wrote that advisers have until 29 February to complete their internal dispute resolution report for ASIC which is another change that will apply to many AFSLs for the first time this year.
AUTHOR
Laura Dew
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
Can we get this extended to Mid year. nobody is even in the office to manage this?