Almost 6000 advisers have yet to sign on to the Australian Securities and Investments Commission (ASIC) Financial Advisers Register, according to the Financial Advice Association Australia (FAAA).
The requirement to register with the corporate regulator was a recommendation of the Hayne royal commission and was formally introduced with the passing of the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Act 2021.
The final date for advisers to register has been postponed several times, initially by the government from 1 January 2023 to 1 July 2023, and on two further occasions by ASIC to 1 October 2023 and ultimately to 1 February 2024.
FAAA chief executive Sarah Abood urged advisers and relevant providers to register with ASIC by the latest deadline or else they will be unable to legally provide personal financial advice to retail clients from February onwards.
“While there have been a number of communications about this new obligation, we are aware that many licensee staff and advisers have been on leave recently and thus not yet attended to this matter,” Abood said.
“Completing this process by 1 February 2024 is essential in order for advisers to continue to practice. A lot is at stake.”
The industry body reminded those advisers who were registered with the Tax Practitioners Board as of 1 January 2022 and have not changed their licensee since then are deemed to be registered and already satisfy the requirement.
For all other advisers, their licensee needs to register them so they can continue to practice and dispense financial advice.
The FAAA directed advisers who were unsure about their registration status to check their registration on the Financial Advisers Register, which is published on the Moneysmart website and is managed by ASIC.
If they are unregistered, advisers should immediately contact their licensee and confirm the process to complete their registration. Resources about the obligation and how to complete the process are also available on the ASIC website.