Government delays financial adviser registration requirement

The Albanese government has announced a delay to the financial adviser registration requirement until 1 July 2023.

A central registration requirement for financial advisers was originally introduced in The Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Act 2021 and was due to come into force from 1 January 2023.

Registration was proposed to occur in two stages, beginning with a one‑off registration process administered by ASIC using the Financial Advisers Register (FAR).

The second stage was then set to commence once the FAR transitions to the Australian Tax Office as part of the Australian Business Registry Service.

“ASIC has been engaging closely with industry about how best to implement stage one, with a view to ensuring the obligation on licensees to register financial advisers operates as efficiently as possible,” Assistant Treasurer and Minister for Financial Services Stephen Jones said in a statement.

“Through this engagement, ASIC has identified ways to improve the operation of the stage one registration process with benefits for licensees.”

Mr Jones said that delaying the requirement will allow the improvements to be implemented, and added that the registration obligation in stage one will remain with licensees.

ASIC Connect delay

In separate statement issued by ASIC, the corporate regulator said while it previously announced that registration would be available through ASIC Connect from October 2022, in light of the announced delay "ASIC has not opened the ASIC Connect portal for registration".

"ASIC now expects AFS licensees will be able to register their financial advisers via the ASIC Connect portal in the second quarter of 2023".

"ASIC will publish guidance in advance of the ASIC Connect portal opening for registration. This guidance material will be accompanied by a set of webinars to assist industry comply with the new registration requirement."