Nearly 6,000 financial advisers are yet to be registered with ASIC* following the passage of legislation in November 2023, putting them at risk of no longer being able to provide advice, according to the FAAA’s CEO Sarah Abood.
The association says that advisers who are not registered by the deadline of 1 February 2024 will not be able to legally provide financial advice.
All advisers who were registered with the Tax Practitioners Board as at 1 January 2022, and have not changed licensee since, are deemed to be registered. For all other advisers, their licensee needs to register them.
Abood says the deadline on 1 February 2024 is challenging as many advisers will only be returning to the office in late January.
While there have been a number of communications about this new obligation “…we are aware that many licensee staff and advisers have been on leave recently and thus not yet attended to this matter.”
…completing this process by 1 February 2024 is essential in order for advisers to continue to practice…
She adds that completing this process by 1 February 2024 “…is essential in order for advisers to continue to practice. A lot is at stake.”
Advisers can check to see whether they are already registered by looking up their adviser record on the Financial Adviser Register.
The association says there is a new field in the first section on ‘Registration status’. If this is showing as ‘Registered’, then there is nothing further required.
However, if it is showing as ‘Not Registered’ “…then it is essential that they immediately contact their licensee to confirm the process to complete registration. One new part of this registration process is the requirement for advisers to provide a declaration that they are a fit and proper person.”
FAAA says ASIC has issued Information Sheet 276 FAQs: Registration for relevant providers, which provides more background information. ASIC also ran webinars in December on the registration requirement, which are available for licensees and advisers.
* According to ASIC data released on 11 January 2024.
