ASIC has issued infringement notices to three AFS licensees whose financial advisers provided personal advice while unregistered.
Each paid an infringement notice penalty of $31,300 in March, with ASIC stating payment is not an admission of guilt or liability.
They are named by ASIC as:
- Australian Advice Network Pty Ltd
- IA Advice Pty Ltd
- Sherrin Partners Services Pty Ltd
After becoming aware of their individual being unregistered, each AFS licensee registered their financial adviser and breach reported to ASIC.
In a statement, ASIC says the registration requirement is an important consumer protection mechanism to ensure AFS licensees have considered and received declarations about whether their financial advisers are fit and proper, and meet the education and training standards.
Failure to register financial advisers may also indicate that AFS licensees do not have adequate governance arrangements in place to ensure they comply with the law, states ASIC.
A copy of the infringement notices are published on ASIC’s infringement notices register.
In January 2024, ASIC Commissioner Alan Kirkland warned that a failure to comply with the registration requirement could incur significant consequences for unregistered financial advisers who continue to provide personal advice and their authorising AFS licensee(s).
