The Australian Securities and Investments Commission (ASIC) has urged Australian Financial Services (AFS) licensees to register their financial advisers.
ASIC records show that at 9am as at 18 January 2024, 4,036 (26%) financial advisers providing personal advice to private clients on relevant products are still not registered with ASIC. As the registration period coincides with the holiday period, ASIC is giving AFS licensees an additional two weeks to register their relevant providers.
ASIC has created an instrument which, on commencement, will extend the registration period until 16 February 2024.
From 16 February 2024, all relevant providers, including timeshare consultants, must be registered. This does not include temporary related providers. A relevant provider giving personal advice while not registered 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 breached a civil penalty provision.
ASIC will not provide further extensions after this time. ASIC will focus on ensuring compliance with the registration regime and taking regulatory action where necessary.
ASIC Commissioner Alan Kirkland stressed the importance of meeting this obligation before the new deadline, warning that non-compliance could have significant consequences for unregistered financial advisers who continue to provide personal advice and the authorized license holder AFS.
Mr Kirkland said:
“We recognize AFS licensees who, since the end of November, have registered their advisers before the requirement starts. We urge AFS franchisees who have not registered their advisers to do so as soon as possible.
After the revised deadline has passed, ASIC will start a program to check compliance with this requirement and will take enforcement action where we identify advisers who provided advice while not registered.”