Two AFS licensees whose financial advisers provided personal advice while unregistered have been given infringement notices by ASIC.
Skye Money Pty Ltd and Smart Financial Capital Pty Ltd each paid a penalty of $31,300 on 1 July 2025 and 11 July 2025, respectively. ASIC states payment is not an admission of guilt or liability.
The regulator said it had reasonable grounds to believe the AFS licensees had authorised a financial adviser – who gave personal advice to a retail client in relation to relevant financial products – while the adviser was unregistered.
“Failure to register a financial adviser creates a risk for consumers who may receive personal advice from unregistered advisers,” states ASIC.
In responding to the infringement notice issued to Skye Money, the firm’s Director, Phil Thompson, said around April 2024 the firm authorised one of its advisers on the ASIC Financial Adviser Register.
Thompson noted the obligation to authorise financial advisers as a ‘relevant provider’ was implemented in February and he incorrectly assumed that once the relevant provider obligations were implemented – when registering a financial adviser through ASIC Connect – that authorising a ‘Financial Adviser’ both registered them as a ‘financial adviser’ and as a ‘relevant provider’.
In what was a clerical error, Thompson said he assumed he was complying with his obligations as the responsible manager of the licensee, and that he takes full responsibility.
He added that at no time did the adviser provide advice to any clients without being on the ASIC Financial Adviser Register, nor was this mistake an attempt to circumvent his obligations as an AFSL.
ASIC states: “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.”
Each AFS licensee immediately registered their financial adviser and reported the breach to ASIC after becoming aware of their individual being unregistered. ASIC had regard to these circumstances in deciding its approach to taking enforcement action.
ASIC has now issued five infringement notices this year to AFS licensees who breached their obligations requirements.
Smart Financial Capital has been approached for comment.
