ASIC confirms new adviser registration requirement

Speaking at the FPA Professionals Congress, Leah Sciacca, a senior executive leader at ASIC, confirmed that advisers have until 1 July next year to register with the ASIC Financial Services and Credit Panel.

Joining Ms Sciacca in a session on regulation, FPA’s Ben Marshan revealed that a majority of advisers aren’t aware of this requirement — a theory he proved by asking participants to raise their hand if they are across the obligation.

“Not a lot of hands there,” Mr Marshan said.

Ms Sciacca explained that it is a new requirement, but one that advisers need to meet by 1 July.

“It is a new requirement and it’s in addition to [the FAR] … The feedback we’ve received is ‘I don’t need to be registered, I’m on the Financial Adviser Register’,” Ms Sciacca said.

The requirement came about as part of The Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Act 2021.

“Some of the advisers will already be deemed registered as a result of being registered with the Tax Practitioners Board and others will not. Their licensee will need to go and register them,” Ms Sciacca said.

“Our sense of it, and the show of hands probably confirmed that awareness isn’t particularly high on this requirement.”

Earlier this month, the Albanese government announced a delay to the financial adviser registration requirement until 1 July 2023.

The requirement was previously due to come into force on 1 January.

At the time, Stephen Jones said that delaying the requirement would allow ASIC to improve the operation of the registration process with benefits for licensees.

In a separate statement issued by ASIC earlier this month, 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.”

Ms Sciacca confirmed that ASIC does have a planned program of work, including an info sheet, which should launch a few months before the start date.