Financial advisers looking to use the experienced provider pathway will need to make a self-declaration they have worked for 10 years in the role and have a clean disciplinary record, as well as inform their licensee of the same by the end of this year under new guidance.
The Australian Securities and Investments Commission (ASIC) released the guidance in “Information Sheet 281: FAQS: Relevant providers – Accessing the experienced provider pathway”, which is directed at advisers and Australian financial services licensees (AFSL) and reflects changes made in the Treasury Laws Amendment (2023 Measures No 3) Act 2023.
ASIC said existing advisers who wish to access the pathway need to make a written declaration and provide it to their AFSL before 1 January 2026 so they can continue to provide personal advice from that date, but has not prescribed the form of the declaration or how it should be passed on to a licensee.
The information sheet pointed out while there was no deadline by which an adviser must make a declaration to access the experienced provider pathway, existing providers who have passed the financial adviser exam were required to meet the qualifications standard by 1 January 2026 to continue providing advice.
“Therefore, an existing provider who intends to continue to provide personal advice from 1 January 2026 and who does not otherwise meet the qualifications standard on 1 January 2026 except through the experienced provider pathway will need to make a declaration before 1 January 2026 to continue to be authorised and registered to provide personal advice,” it stated.
“If an existing provider in this situation fails to make their declaration before 1 January 2026, they will be taken to not meet the qualifications standard and will lose their relevant provider status from 1 January 2026. This means they will no longer be able to provide personal advice.
“To be eligible to access the pathway, a financial adviser should also have passed the financial adviser exam by 1 January 2022 (or 1 October 2022 if they were eligible for the exam extension) if they were authorised to provide personal advice to retail clients on relevant financial products (personal advice) on that date.
“Financial advisers who are eligible to access the experienced provider pathway have been able to make a declaration since 21 September 2023.
“From 1 July 2024, AFSLs will be required to notify ASIC using [the] ASIC Connect [website] where they have received a declaration from a financial adviser who is eligible to access the experienced provider pathway, including where they received a declaration from a financial adviser before this date.”
The experienced provider pathway was passed into law in September 2023 and considers financial advisers to have met the mandated qualifications and professional year standards without further education and training if they have at least 10 years of cumulative experience as an authorised financial adviser between 1 January 2007 and 31 December 2021 and a clean disciplinary record as at 31 December 2021.
