The Australian Securities and Investments Commission (ASIC) has today issued a reminder to financial advisers (known as relevant providers) about their obligations to register.

Financial advisers who do not register with ASIC before 16 February 2024 will have to stop providing personal advice to private clients.

AFS license holders are invited to register their relevant providers on a priority basis through ASIC Connect.

Between 1 February 2024 and 5 February 2024, ASIC sent individual emails to relevant providers who were not registered on 1 February 2024 reminding them of the AFS license holder registration requirement.

ASIC records show that, at 9:00 a.m. as of 6 February 2024, 757 (4.9%) individual relevant providers (including timeshare advisers) are not yet registered with ASIC.

ASIC is encouraging relevant providers to check their registration status on the Register of Financial Advisers today to ensure they are listed as ‘registered’. If they are not recorded as ‘registered’, they must stop giving personal advice from midnight on 15 February 2024, until they are registered and marked as such on the Register of Financial Advisers. This includes all personal advice as well as ongoing advice services.

From 16 February 2024, if a relevant provider provides personal advice while unregistered, it will be in breach of a limited civil penalty provision and the relevant provider’s authorized AFS licensees will have committed a strict liability offense and breach a civil penalty provision.

AFS licensees can apply to register their relevant providers now using ASIC Connect by submitting a ‘Related Provider Registration’ transaction.

The requirement to register relevant providers is an ongoing obligation, commencing on 16 February 2024. Relevant providers and their AFS license holders should have sound procedures in place to ensure that a relevant provider is registered before providing personal advice to private customers in relation to relevant financial products.

AFS licensees should also ensure that they understand the circumstances under which a relevant provider will cease to be registered.

ASIC will soon launch a program to ensure compliance with this new obligation.


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