ASIC is extending the date by which financial advisers must be registered.
The commission says it will extend the date by which relevant providers – that is, financial advisers who provide personal advice to retail clients on relevant financial products – must be registered to 1 October 2023. Previously the date was set at 1 July 2023.
ASIC notes that after the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 has passed into law it will issue regulatory guidance, conduct webinars, and open the registration portal to commence accepting applications for registration.
It says a further delay to the registration requirement will allow time for:
- Parliament to consider the improvements proposed by the Bill
- ASIC to assist the financial advice industry to understand and comply with the registration requirement by issuing regulatory guidance and conducting webinars
- Australian financial service licensees to understand the registration requirement and to make necessary applications to register their relevant providers with ASIC
…the registration requirement is new…
ASIC adds the registration requirement is new.
“It is separate, and in addition to, the pre-existing requirements for an AFS licensee to appoint a relevant provider to the Financial Advisers Register after they have been authorised. Provisional Relevant Providers cannot be registered.”
As background the commission notes the requirement for financial advisers to be registered was introduced by the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021.
It explains that on 1 November 2022, Government announced that it would delay the financial adviser registration requirement until 1 July 2023 “…to allow certain improvements to be made to the Stage 1 registration requirement.”
In February 2023, Government introduced these improvements by way of the Treasury Laws Amendment (2023 Measures No.1) Bill 2023.
ASIC says that Bill was referred to the Senate Economics Legislation Committee on 9 March 2023, for inquiry and report. The report is due by 2 June 2023.
