AFS Licensees had until 1 January 2020 to ensure the Financial Advisers Register (Register) contains all the required additional Financial Adviser details now required by ASIC. It is a breach of your AFS licence obligations not to have done so and penalties may apply.
Additional Information Required for the Register
The following additional information should have been provided for each Financial Adviser:
- Principal place of business address;
- Email address (not displayed on the public Register);
- Adviser role type;
- CPD year start date (not displayed on the public Register);
- Financial Adviser Standards and Ethics Authority (FASEA) exam pass date;
- Qualification details and whether the qualification is FASEA approved; and
- Any failure to comply with the Code of Ethics or CPD requirements.
AFS Licensees who did not update their information by 1 January 2020 should record this as a breach in their breach register and consider whether it is required to be reported to ASIC as a significant breach under RG78.
The Government established FASEA to uphold the education, training and ethical standards of Financial Advisers. The professional standards require Financial Advisers to:
- complete a FASEA approved exam;
- hold approved qualifications;
- complete the required number of CPD hours;
- comply with the Code of Ethics; and
- be a member of an ASIC approved monitoring scheme.
ASIC has been rolling out the various elements of these professional standards since FASEA’s establishment in April 2017. In the latest stage of the roll out of the professional standards, Financial Advisers’ compliance with these standards is now required to be provided to be included on the Register.
(authorised on or after 1 January 2019)
(authorised between 1 January 2016 and 1 January 2019)
|All details to be listed on the Register||1 January 2020||1 January 2020|
|Comply with the Code of Ethics||From 1 January 2020||From 1 January 2020|
|Pass the FASEA exam||From 1 January 2019||By 1 January 2026|
|Complete a Professional Year||From 1 January 2019||Not Applicable|
|Comply with CPD requirements||From 1 January 2019||From 1 January 2019|
|Be covered by a compliance scheme||Exemption until 1 January 2022||Exemption until 1 January 2022|
New Financial Advisers must comply with all of the professional standards, and also complete their Professional Year before they are able to be listed on the Register as a Financial Adviser. New Financial Advisers can be listed on the Register as a Provisional Adviser once they have met the education requirements, passed the FASEA exam and are in the process of undertaking their Professional Year.
Compliance Scheme Cover Exemption Until 2022
ASIC has granted a three-year exemption to AFS licensees from the obligation to ensure that financial advisers are covered by an approved compliance scheme and from the associated notification obligations. A new disciplinary system and single disciplinary body for financial advisers will be established to replace the role of compliance schemes.
Change of Details
When a Financial Adviser’s details change, the AFS licensee must update their information on the Register within 30 business days.
If you have concerns about the information displayed for a Financial Adviser authorised under an AFS licence, see Report inaccurate information on the Financial Advisers Register.
For more information, see ASIC’s media releases:
- Information on the Financial Advisers Register;
- Timeline for the Reforms;
- Maintain or correct a financial adviser’s details;
- How the reforms affect you;
- Reforms to professional standards for financial advisers; and
- ASIC relief from financial adviser compliance scheme obligations takes effect.
- How do the new FASEA CPD Requirements Affect your Business
- Updates to the Professional Standards Reform are Coming – Are you Prepared?
Should you have any questions about the new requirements, please contact us.