ASIC outlines ‘existing provider’ requirements

Under the new professional standards, advisers who appear on the financial adviser register (FAR) between 1 January 2016 and 1 January 2019 will be considered ‘existing providers’ and will have until 1 January 2021 to complete FASEA’s adviser exam, and until 1 January 2024 to complete an approved degree.

Advisers who are not considered ‘existing providers’ must complete both an approved degree and pass the exam by 1 January 2019 in order to continue practicing.

“Therefore, financial advisers who are currently authorised to provide personal advice to retail clients on more complex financial products should make sure they are on FAR,” ASIC said.

The regulator has also revised the timing of FAR’s earliest notification requirements under the new standards in an effort to simplify licensees’ notification obligations and allow ASIC to more effectively implement the necessary system changes.

“These changes do not affect advisers’ and licensees’ substantive obligations under the professional standards reforms. Advisers and licensees must still comply with the new substantive professionalism and education requirements and licensees must keep appropriate records for compliance purposes,” ASIC said.

“A key change is that ASIC will push back the timing for licensees to notify of new advisers who are joining the industry for the first time after 1 January 2019. As a result, new ‘provisional relevant providers’ can only be added to FAR from 15 November 2019.”

A full list of the changes is available on the ASIC website.