ASIC confirms number of unregistered advisers

As of 16 February 2024, there are only 27 unregistered relevant providers, the corporate regulator told ifa.

“When ASIC granted an extension on 18 January 2024, 4,036, or 26 per cent, of financial advisers who provide personal advice to retail clients on relevant products were still not registered,” a spokesperson for the regulator said.

“Over the last two weeks, we have engaged directly by phone call and email with advisers and licensees to remind them that advisers practising under their licence must be registered in order to continue to provide advice.

“It’s pleasing that following direct engagement by ASIC, the large majority of financial advisers registered by the 16 February 2024 deadline.”

The Australian Securities and Investments Commission (ASIC) is now expected to follow up with the small number of advisers who are yet to register.

The spokesperson confirmed that ASIC will consider “appropriate enforcement action against both the adviser and licensee if there is evidence of them providing personal financial advice without being registered”.

“Advisers who give advice without being registered are in breach of civil penalty provisions,” the regulator said.

"ASIC may also convene the Financial Services and Credit Panel to apply restrictions to an adviser, including preventing them from working as an adviser.”

It also confirmed that AFS licensees who have advisers practising under their licence risk penalties of up to $6,260 per non-compliant adviser.

“Registration of relevant providers is an ongoing obligation, a relevant provider’s registration will cease when they change AFS licensee and their new AFS licensee will need to apply to register them again,” the spokesperson concluded.

ifa earlier reported that as of today, 16 February, all advisers must be registered on the ASIC register to maintain their ability to provide financial advice.

The new registration obligation, initially introduced in the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Act 2021, has faced challenges from the outset due to parliamentary delays and the regulator’s technology issues.

While the deadline has now been pushed back several times, speaking to ifa recently, chairman Alan Kirkland confirmed that there would be no further extensions.