Bowing to pressure, the corporate regulator said on Thursday it has extended the due date for registration by two weeks and confirmed 16 February 2024 as the final date for the commencement of the registration requirement.
The regulator disclosed that according to its records, as at 9am on 18 January, 4,036 (26 per cent) financial advisers who provide personal advice to retail clients on relevant products (relevant providers) are still not registered with the Australian Securities and Investments Commission (ASIC).
Given that the period for registration has coincided with the summer holiday period, ASIC noted it is providing AFS licensees an additional two weeks to register their relevant providers.
The regulator noted, however, that from 16 February 2024, all relevant providers, including time-share advisers, must be registered.
Those that are not registered by this date and continue to provide personal advice while unregistered will be in breach of a restricted civil penalty provision, while the relevant provider’s authorising AFS licensee(s) will have committed an offence of strict liability and contravened a civil penalty provision.
ASIC Commissioner Alan Kirkland stressed in the regulator’s statement the importance of meeting this obligation ahead of the new deadline, warning a failure to comply could incur significant consequences for unregistered financial advisers who continue to provide personal advice and their authorising AFS licensee.
“The provision of personal advice by unregistered advisers is prohibited and carries significant penalties,” Mr Kirkland said.
“ASIC has provided a short extension in recognition of the fact that the initial period for registration has coincided with the summer holiday period.
“We acknowledge those AFS licensees who, since late November, have registered their advisers ahead of the requirement commencing. We urge AFS licensees that have not registered their advisers to do so as soon as possible.
“After the revised deadline has passed, ASIC will begin a program to check compliance with this requirement and will take enforcement action where we identify advisers who have provided advice while unregistered,” he said.
ASIC reiterated that it will not provide any further extensions after this time.
On Wednesday, the Financial Advice Association Australia (FAAA) said nearly 6,000 financial advisers are yet to be registered with ASIC following the passage of legislation in November 2023.
the pain is not in complying, it is in trying to navigate the finicky ASIC web sites.
Can anyone explain why this process turned into a cluster …k? Where does the blame sit for what should have been a reasonably easy process? This ignores that the concept is a complete and utter waste of time but I’ve given up trying to work out why ASIC does what it does in relation to financial planning.
I don’t get it – everyone is already registered. otherwise they wouldn’t be able to practice. But we have to register again and with the same organisation!! Has to be one of the most utterly stupid things ever … and that’s saying something given the lunacy passed down in recent years. Is there a person who is responsible for this, or has it come from some panel of lawyers somewhere in an alternate universe.
Dear ASIC, have you ever explained what, IF ANY benefit this FAR Re-registration of ALL Advisers that are ALREADY REGISTERED ON FAR, is about?????
What the hell is any Benefit ASIC ????
Besides the $50 x 15,800 Advisers = $800k ASIC income.
I think ASIc forgot to add that it me of the reasons why they needed to offer an extension is their system takes so long to register multiple advisers…
The system requiring licensees to register advisers one by one in single transactions, (can’t even save & add another), in antiquated technology and incur an additional $50 fee, even after having paid to already register the adviser with ASIC, already is nothing but a money grab and paying fees for very poor client experience… for licensees with many advisers this is a long and tedious process…
Oh my sweet baby jesus .. how on earth do we hope to get anything accomplished ?