ASIC reinforces advisers’ registration obligations with new warning

While most relevant providers are currently registered, the Australian Securities and Investments Commission (ASIC) issued a warning on Friday to all AFS licensees and relevant providers, stressing the importance of complying with the registration obligation on an “ongoing basis”.

As of 16 February, all advisers must be registered on the ASIC register to maintain their ability to provide financial advice.

Last month, the corporate regulator informed ifa that only 27 relevant providers remained unregistered at the deadline’s expiration.

The new registration obligation, initially introduced in the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Act 2021, faced challenges from the outset due to parliamentary delays and the regulator’s technology issues.

The deadline was pushed back several times, finally expiring on 16 February.

However, ASIC confirmed on Friday that licensees and their advisers need to ensure compliance with the obligation on an ongoing basis.

“While most relevant providers are currently registered, ASIC reminds AFS licensees and relevant providers of the importance of complying with the registration obligation on an ongoing basis,” the regulator said.

“Both AFS licensees and relevant providers should ensure that they understand the circumstances where new registration is required.”

The regulator elaborated that AFS licensees must register their relevant providers after they authorise and appoint an adviser to the Financial Advisers Register (FAR), when they appoint an adviser who has moved from another AFS licensee, when an adviser changes roles from a ‘provisional relevant provider’ to a ‘relevant provider’, when an adviser is dually authorised, and when the adviser’s authorisation with their registering AFS licensee ceases.

ASIC also reminded that from 16 February, unregistered relevant providers who provide personal advice to retail clients in relation to relevant financial products, together with their AFS licensee, will be in breach of the law and face potential regulatory action.

Back in February, the regulator told ifa that ASIC will consider “appropriate enforcement action against both the adviser and licensee if there is evidence of them providing personal financial advice without being registered”.

“Advisers who give advice without being registered are in breach of civil penalty provisions,” the regulator said.

"ASIC may also convene the Financial Services and Credit Panel to apply restrictions to an adviser, including preventing them from working as an adviser.”

Information Sheet 276 FAQs: Registration for relevant providers (INFO 276) sets out information about the registration requirement, including when a registration will cease.