Australian financial services (AFS) licensees have been reminded of their obligation to check the qualifications of their advisers and to ensure they exactly match those on the list of approved degrees.
The reminder was issued by the Australian Securities and Investments Commission (ASIC) as part of an update on regulatory developments related to financial advice.
In the update, ASIC stated advice licensees had to ensure their relevant providers complied with the qualifications standard in section 921B(2) of the Corporations Act 2001 before they authorised them, even if the adviser was previously authorised by another licensee.
The corporate regulator noted licensees could assess whether an adviser had completed an approved bachelor or higher degree, or equivalent qualification, by checking the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021.
“As an AFS licensee, you must ensure that the qualifications exactly match those listed in the determination,” it said.
“If a domestic qualification has been completed in accordance with schedule one of the determination, but does not satisfy the prescribed conditions (for example, unit codes or names do not match or different commencement dates), then an application can be made to Treasury to assess whether the qualification satisfies section 921B(2) of the Corporations Act.
“If an adviser has foreign qualifications, an application can also be made to Treasury to assess whether these qualifications are equivalent to an Australian bachelor’s or higher degree.
“If Treasury establishes that an adviser has completed an approved degree or qualification, the relevant provider’s authorising AFS licensee must record this on the Financial Advisers Register as an approved degree or qualification.
“This can be completed during the appointment process or by submitting a maintenance transaction if the adviser has already been appointed by the AFS licensee.”
The reminder follows a series of changes to the way financial advisers must report their qualifications, with those looking to use the experienced provider pathway being required to self-declare that intention while their licensee must report the same to ASIC. Licensees are also required to ensure adviser qualifications are accurately recorded in the Financial Advisers Register.
