ASIC targets 500 licensees as part of its register review project

The corporate regulator has written to 491 AFS licensees to update 793 advisers’ records to reflect a ceased authorisation status on the Financial Adviser Register (FAR) or provide proof of having passed the financial adviser exam, or their eligibility for the exam extension.

In April this year, the regulator commenced the Financial Advisers Register Review project to ensure that the Financial Advisers Register (FAR) accurately reflected the correct status of financial advisers who were prohibited from providing personal advice to retail clients on relevant financial products because they did not pass the financial adviser exam by 1 January 2022, or otherwise do not qualify for an extension of time to pass the exam.

“As at 30 June 2022, the Financial Advisers Register includes details for 16,620 active financial advisers,” ASIC said in its latest annual report.

“AFS licensees must ensure that details about their financial advisers on the register are correct in accordance with their obligations under the Act. An accurate Financial Advisers Register is integral to ensuring that the public can reference accurate and up‑to‑date records when making decisions about whether to engage [with] an adviser,” the regulator stressed.

ASIC noted that as at 30 June, 432 AFS licensees had updated the Financial Advisers Register to change the authorisation status of 696 advisers to ‘ceased’ after receiving correspondence from ASIC.