The corporate regulator has reminded advisers to make sure they are on their adviser register by the end of this year, before new professional standards requirements take effect.
Under the reforms, only financial advisers who were authorised at any time between 1 January 2016 and 1 January 2019, and who are not prohibited from providing advice on 1 January 2019, will be recognised as an 'existing provider', ASIC said in a statement
Professional standards reforms for financial advisers were introduced in March 2017 to raise the education, training and ethical standards of people providing personal advice to retail clients on more complex financial products.
The new requirements will be implemented progressively from 1 January 2019.
"Financial advisers can demonstrate they are an 'existing provider' by having a status of 'current' on the Financial Advisers Register at any time in this period. Without recognition as an 'existing provider', financial advisers will be treated as ‘new entrants’ to the industry," ASIC said.
ASIC said that from 1 January 2019, new entrants will have to meet new education and training requirements to be able to provide advice to clients.
They will also have to complete an approved qualification and pass an exam before they can be authorised to provide advice, and they will also have to complete a year of supervised work and training.
Registration on the Financial Advisers Register is the responsibility of the AFSLs who authorise advisers, ASIC said.
It also reminded advisers to speak to their licensees to ensure that they are on the register before the deadline, and that they can check if they are already registered.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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