In a letter to Financial Services Minister Jane Hume published on LinkedIn, Smart Compliance’s Brett Walker revealed he had been made aware of a licensee client charged almost $700 in late fees from ASIC for late reporting of two advisers’ exam results.
“Dear Minister, I work with AFSLs across the country. I am just off the phone with one who is faced with two fee payments totaling $680 because he is late advising ASIC that he and his colleague passed the FASEA exam,” Mr Walker said.
“Across the country there are likely hundreds faced with similar shocks. This comes on top of significant ASIC levy increases and advisers having to pay thousands of dollars to sit the exam in the first place. How much more blood can be drawn from a stone, Minister?”
Mr Walker told ifa the issue had come to his attention through discussions with the Boutique Financial Planning Principals Association, and he had since been made aware of a number of other advisers in the same situation.
According to information on the ASIC website, the regulator charges a range of fees to licensees to add or update details of their authorised representatives, but the option to add the pass date of advisers’ FASEA exam, along with a number of other FASEA-related details, is listed as free.
In his letter, Mr Walker said the government should move to transfer responsibility for adviser exam data to FASEA, removing the obligation for individual advisers to notify ASIC of their results.
“The exam results are published by FASEA to the adviser. Why can’t FASEA simply transmit that information (e.g. via API) to ASIC so that adviser records are automatically updated without the need for adviser involvement?” he said.
“Why must advisers (i) study for, (ii) sit, (iii) (hopefully) pass then (iv) have to tell ASIC and (v) pay a fee for the privilege? And cop a late fee if they forget to log into the incredibly clunky ASIC Connect system and do FASEA and ASIC’s work for them?”
ASIC was approached for comment on the issue, but failed to respond before deadline.
Typical.
not that hard,…it was blatantly obvious..and as a self licensed adviser I made the time… payup, shut up and move along…pretty sure plenty of other self licensed business were “competent” and “diligent” enough. Oh wait those FASEA values appear only lip service for some it appears….What else has been missed? Mind blowing how this gets Oxygen given the other big rocks that get little attention..and very little was said by so called consultants that make a personal gain, when FASEA was first considered..
“Pay up and shut up” great application of Standard 12. Maybe you are the one that gives lip service.
“FINTECH” is code for more “intra-fund advice” rorting by the big institutions. Just a racket.
We are just “pin cushions” for the regulators and seem to cop it from all fronts these days. We copped the fine and then found that they don’t display on the FAR ..whats the point..ffs!
I am 60 and a 25 yr industry “veteran” and love my career and the positive impact I believe I have had on loyal clients . I passed FASEA ..but thankful I have decided not to complete the additional study and enjoy my last 4 years as an adviser until I ride off into the sunset on 31Dec2025 (and a possible new career as a money coach!!!) .
a lot of well said comments below….
the government don’t care what ASIC charge as Josh wants the budget back in the black ASAP for his next election war chest…. 😀
Can I fine ASIC for not updating my educating and qualifications – have paid to update this twice but they have still FAILED. Clearly a significant breach
Here here Brett Walker. Thanks for writing this note. The costs are like logs on a fire that keep adding up one by one without anyone counting them all up.
What a joke. The National Manager who presides over FASEA does not either have an Advanced Diploma in FP.
The FASEA exam pass list was last updated in December. Seriously, if you are going to have a list, at least keep it up to date.
surely the overarching obligation is for advisers to have met their exam requirements before the 2022 deadline. And noting how fasea is part of the process – would it not make sense to shoot at those people that have not met the 2022 deadline. It’s as if there is zero adult supervision in that world of ASIC – remains to see if a grownup can step up to the plate and walk back on the clowns
Advising ASIC should be a FASEA responsibility !!
I passed the Ethics and Professionalism Exam in 2019, the FASEA Industry exam in Oct 2020. My AFSL advised ASIC on both occasions yet still nothing updated on the FAR? Seriously?
Have you checked with your licensee whether they received ASIC acknowledgement of your FASEA exam status update on the FAR? Licensees receive an acknowledgement record from ASIC which they should be able to show you.
There is no point looking at the public version of the FAR for your FASEA exam status, because it is not displayed. ASIC have taken the sensible decision to not display this, as there are many good reasons why advisers have deferred their exam sitting until later in the allowable time window. (COVID disruptions being one).
From Jan next year anyone who hasn’t passed the FASEA exam will be removed from the FAR, so your FASEA exam passing status will be evident from the simple fact you are still listed. This is why it’s important to check for ASIC’s acknowledgement with your licensee if you are in any doubt.
Wouldn’t it have been reasonable to just expect you had to get your records updated before the end of the year since that is the only time the FASEA exam will have any significance. Sorry for being logical???? Also waiting to get billed from my licensee for the extra exorbitant increase in the ASIC Levy. Ain’t life (as a financial planner) grand!!!
ASOC “but failed to respond before deadline” – typical – can I fine them?
Did Shipton have to pay a late fee for the refund of the taxpayers money he stole to pay his personal expenses?
Great work Brett. Hopefully this bizarre example will highlight to MIA Jane just how dysfunctional and counterproductive our regulatory environment has become.
And no Jane, spruiking more “fintech” is not the solution to the regulatory mess you and your predecessors have created. The solution is to clean up the mess.
yeah lets introduce fintec and remove client protections just get companies to add sale funnels via “roboAdvice” can we give them a crave out like intra fund advice as well?
What an absolute goddam disgrace.
Brett, you are a great supporter of advice because you get it. The profession is so much better thanks to your involvement.
ASIC failed to respond before the deadline?? How much should that cost in late fees??
Keep on kicking the Advisers ASIC and we will all REVOLT.
Advisers should on mass against the levy and these absurd FARSEA / ASIC late fees.
Let’s see if ASIC will shut the whole Advice Industry down ???
They are already trying, death by every increasing BS REGS, let’s see if they will pull the trigger.
Let’s take them on !!!! Way past enough crap from ASIC and LNP.
these people have no idea-the exam result should automatically go to ASIC
What a fantastic industry the adviser pays all wages for the parasites who get there income from there hard work dead set joke and the adviser is always getting shafted wow how fucked is this industry