ASIC is calling on AFS licensees to assess the accuracy of records about their financial advisers on the Financial Advisers Register after a spot check identified errors and inconsistencies in some of the information provided.
Issues identified relate to qualifications and training courses being marked as ‘approved’ on the Financial Advisers Register, when in many cases, this marking was incorrect.
Common errors include:
some of the qualifications marked as ‘approved’ did not accurately match the wording of the course in the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021 (the Determination),
some of the qualifications marked as ‘approved’ were not approved qualifications, they were professional designations (e.g. ‘Certified Financial Planner’),
some of the qualifications marked as ‘approved’ were not, in isolation, approved qualifications, they were bridging courses. These may be listed in the Determination but are required to be coupled with another qualification to meet the requirements of the professional standard, and
some of the qualifications marked as ‘approved’ were not approved qualifications under the Determination (examples include: the Financial Adviser Exam, Australian Qualifications Framework 1-5 qualifications, and Regulatory Guide 146 training/qualifications).
ASIC is also aware of instances where AFS licensees have not ensured that the contact details of their financial advisers are up to date.
AFS licensees are urged to immediately check all the information recorded about their financial advisers on the Financial Advisers Register, with a particular focus on the adviser’s approved qualification(s), ability to provide tax (financial) advice services, business address and telephone number. Guidance is available on the ASIC website on how to check an adviser’s qualifications against the Determination and how to determine if an adviser can provide tax (financial) advice services.
Any incorrect or out of date information must be rectified by lodging a ‘maintain’ transaction via ASIC Connect. Only one fee applies if multiple pieces of information are updated in a single transaction.
It is a serious offence to knowingly provide false or misleading information to ASIC or to fail to take reasonable steps to ensure that the information provided to ASIC is true and correct. It is also an offence to fail to update the Financial Advisers Register within 30 business days of a financial adviser’s details changing.
From 1 August 2024, ASIC will commence a compliance program to ensure that the information recorded on the Financial Advisers Register about approved qualifications is correct and will consider enforcement action where necessary. This will remain a key focus for ASIC in the lead up to 1 January 2026, when all financial advisers must comply with the qualification standard, either by completing an approved qualification, by completing qualifications the Minister has determined to be equivalent to an approved qualification for existing advisers, or by accessing the experienced provider pathway.
Updates to information displayed on the Financial Advisers Register
In response to the issues identified and in recognition of the recent introduction of the experienced provider pathway, ASIC has made changes to the public-facing Financial Advisers Register (available on moneysmart.gov.au and data.gov.au).
From 1 July, the public-facing register will no longer display whether a financial adviser’s education and training meets the requirements of an ‘approved’ qualification. The Financial Advisers Register will continue to display information provided by Licensees about an adviser’s relevant qualifications and training (without the approved qualification marking).
Removing this information from the public-facing register aims to reduce confusion and minimise risks to consumers. The update also recognises the introduction of the experienced provider pathway, which provides an alternative to the completion of an approved qualification. To assist licensees to identify qualifications currently marked as ‘approved’ on the Financial Advisers Register, ASIC has made a one-off point-in-time dataset available on the ASIC website. This dataset can be used in addition to checking an adviser’s details on an individual basis in ASIC Connect and will be available until 31 July 2024.
