The Australian Securities and Investments Commission (ASIC) has reminded Australian financial services (AFS) licensees that from 1 July they will be required to inform the regulator when an adviser is using the experienced provider pathway to meet mandatory qualification standards.
ASIC stated from the start of the new financial year, AFS licensees are required to lodge a notice with it when they receive a written declaration from a financial adviser who is eligible to access the experienced provider pathway.
“AFS licensees have 30 business days to notify ASIC from the day they receive a written declaration. For written declarations received before 1 July 2024, AFS licensees have 30 business days from that day to notify ASIC,” the regulator stated, adding notices can be lodged via the ASIC Connect portal.
It said the need for an AFS licensee to give notice follows changes that came into effect on 21 September 2023 that opened the pathway to advisers as an alternative way to meet the qualifications and professional-year standards, but also requires them to make a written declaration and provide that to their licensee as soon as practicable.
ASIC noted it had provided new guidance last month in Information Sheet 281 as to how advisers can check if they are eligible to use the pathway and how licensees can ensure an adviser who has provided a copy of a written declaration is eligible to access the experienced pathway.
The Financial Advisers Register will not display whether an adviser was relying on the experienced provider pathway to meet the qualification standards, but ASIC did warn criminal and/or civil penalties could apply for failing to notify it of a declaration within the required timeframes.
