In a joint submission to the Senate economic legislation committee’s inquiry into Treasury Laws Amendment Bill 2023, the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have asked the government to delay the relevant provider registration requirements by three to six months.
“The FPA and AFA request consideration of extending the registration requirement by 3–6 months or permit ASIC to use a facilitative approach to enforcement of this measure, to allow licensees and financial advisers to comply with the new requirement,” the groups, which have now merged into the Financial Advice Association Australia (FAAA), said.
The groups explained that they are concerned about the timeliness of this legislation given the committee is due to report by 26 May, just 25 working days and eight Senate sitting days prior to the commencement of the requirement.
The FPA and AFA also asked, as part of their submission, that the government permit a relevant provider to be registered on the register by more than one licensee.
“This clarification is necessary to enable licensees to meet their legal obligation to register all relevant providers authorised to provide financial advice on relevant financial products to retail clients under their licence,” they said.
In November last year, Leah Sciacca, a senior executive leader at ASIC, confirmed that advisers would have until 1 July 2023 to register with the ASIC Financial Services and Credit Panel.
“It is a new requirement and it’s in addition to [the FAR] … The feedback we’ve received is ‘I don’t need to be registered, I’m on the Financial Adviser Register’,” Ms Sciacca said.
The requirement came about as part of the Financial Sector Reform (Hayne Royal Commission Response–Better Advice) Act 2021.
“Some of the advisers will already be deemed registered as a result of being registered with the Tax Practitioners Board and others will not. Their licensee will need to go and register them,” Ms Sciacca said.
Earlier that month, the Albanese government announced a delay to the financial adviser registration requirement until 1 July 2023.
The requirement was previously due to come into force on 1 January.
At the time, Stephen Jones said that delaying the requirement would allow ASIC to improve the operation of the registration process with benefits for licensees.
